actually, a couple of my buddies told me about this forum, and they follow it daily, but never post. So that's three that I know of just from my neck of the woods. Add yourself and PM, and your estimate is already maxed out. I post some of the same questions my pals don't have the balls to post, because they're afraid they'll be exposed as the ignorant dumb shits that they are
No, it's pretty much just spread traders. But that includes "spread type trades" as well, such as Iron Condors. Any other type investor knows when he is using leverage. Saying "most" spread traders are ignorant of the amount of leverage they are using may be the wrong word. But many certainly don't. But perhaps "most" is the correct word. Particularly those new to the strategy. DS said he was doing spreads for years, before he finally acknowleged he had no idea he was using margin leverage. Let alone 5 - 10 times his account value. Perhaps that's because he had been successful at it. It's generally only when things go bad that you find out.... when your broker informs you that you've lost 60 - 90% of your account value. <<< I think I get the point, though, that it's always better to at least have the option to take ownership of a stock, even if it's shit, and hope for a recovery. >>> Exactly. Obviously if your stock is down 50% you probably don't want to buy it, and you're happy to close the spread, and take a total loss. But if your spreads are only down a small % below one or both strikes, it's nice to have the "choice" of buying the stocks. Because if you can't buy, due to your using leverage of 5 - 10 times your account value, then your only "choice' is to close the trade for a loss. And depending on how deep you let your stock(s) get between your strikes before closing the trade,.... the loss of your account value could be severe. Perhaps even 90 - 100%. (But that 90 - 100% figure assumes all or most of your stocks are deteriorating, due to some market event). I'm NOT refering to the trader who does the "occasional" spread. I'm talking about those who use credit spread type strategies as their prefered mode of investment..... either mostly or entirely. That type investor is using margin leverage of at least 8 - 10 times his account value..... if not more. (Unless they are only using strikes in the 5 - 15 dollar range). That 8 - 10 times of excesssive leverage may not be a major issue for most, if they are at least "aware" of the amount of leverage they are using, as he will intelligently "manage his risk", and close those deteriorating trades early. It's the folks who have no idea they are using margin of 8 - 10 times their account value who get severely punished, or "wiped out", as they tend to let their stocks drift too deep between or below their strikes, before thinking about closing the trade.
I read the forum for years myself before posting. As did others I know, who still don't post. But most of the hits are from the same folks just checking in again, to see if something new was posted, or to re-read something again.
Don't overly focus on the ZACK's or other analyst stories. When QSII was trading in the $40 area earlier in the year, I'm guessing the ratings and stories from many companies were positive, as it rose from the 20's to the 30's and into the 40's. My focus is on price value. Not the stories. Hence the reason I'm invested at $14.75....... not the 20's, 30's and 40's. Hence the reason I rely on my own analysis. Not others.
Hell, I've made money at real estate, and have written and sold award winning songs, but that doesn't mean I should be arguing spread trading with others who are informed. Why the hell didn't you just admit to being an amateur in the first place? I really thought you had to believe you had valid points as argumentative as you were, and defensive as you were of your positions. You basically said your strategy was better, period. And now you come back with this? Unbelievable. I should have known early on when you made that statement saying something like, "I would never under any circumstances want to own the stock if it fell below my strike." - That sounds like a guy who says he doesn't want to have anything to do with his girlfriend after he caught her in bed with another guy, but then probably drives by her house to see who's car is in the driveway. ...remember to vote for Obama this tuesday...
<<< remember to vote for Obama this tuesday... >>> I have only one thing to say about that. "KENYA" "Ken ya" believe it will soon be over!!!
I really hope you are referring to the Romney/Ryan campaign. If not then you must be referring to the 4 yr bull run the market's been enjoying, IF Romney takes office.
There is only one reason the stock market has been in a bull run. There is no place else for investors to put their money. The days of bank, CD's, bond investing, ect.... has been gone for years. They don't pay anything. Real estate value has also been dropping. As a result, people who don't belong in the stock market, have been in the stock market.
Real estate hit a bottom nearly 4 years ago(which Obama was not responsible for) and has been an excellent place to invest- IMHO-particularly in buying rentals. Very few have been buying, which is keeping prices down, but everyone needs a place to live so why not buy rentals and let someone else pay you while your property appreciates in value(which it has). LOTS of opportunity there. For fear of being accused of hijacking this thread, I should probably post my trades from yesterday, NOV 2. Bought (7) CIEN Jan13 12.50 calls for 1.43 ea. Cien (currently 12.77) recently bounced off a bottom support level at 11.96, and will likely test the 13-15 dollar price range before its earnings report on DEC 3. Bought (4) X Jan13 24.00 puts for 3.20 ea. United States Steel (currently 20.84) has recently failed to break through resistance at 23.33 and has been on a near 2 year down trend. Recent earnings and outlook was not promising. I look for X to drop down to it's support at around 19.00 . if it bounces at around 19.10 it may test the 23-24 price range again, but if it falls through below 17.67, then who knows how far this iron ship will sink.