If it was so stabilized that you could make money on short straddles, then the IV would drop cause the premium to drop, so then you wouldn't be able to raise a family selling short straddles.
aint that the truth, everytime you think you got it figured out, they come up with some way to get you at the moment I'm long aud and gbp and short usd and eur but it's not an easy way to go and nothing I would recommend to someone just starting out and the pathetic thing is, my only hope is, "Sooner or later, I will buy the bottom."
No one needs to buy the bottom or short the top, that's just an egotistical naive thought. You just need to be right on direction.
Unless of course you are good at it. I don't look at it at all of selling the highs/buying lows as an ego anything, I have always looked at it as making money. I trade off monthly/weekly in stocks, many stocks have a very long history in the Dow 30 in which I mainly trade, so one learns the personality of what you trade. Whether you go with slope of an EMA for trend or Counter-trend, following your rules is where the money comes.
It can be done occasionally but not regularly otherwise the list of Soros, Rogers, Buffett, and all the great ones would also be known as that + Handle123 Small risk, large reward, high accuracy does not come by frequently.
If depends for what. Examples: 1) cover short at the last bar before the bottoming process, 2) ..., and 3) ....
true, I was talking about the guys on tv. You can buy this stock, it is very cheap, with very little downside risk (since everybody that owned it already sold it) so what's the point if it's future prospects are not very bright? that's why I say you have to beleive it is going up.