an oldie but a goodie

The Buffest Man To Ever Swing a Stock Certificate:

"Mr. Market"

To understand the irrationality of stock prices, imagine you and Mr. Market are partners in a private business. Each day without fail, Mr. Market quotes a price at which he is willing to buy your interest or sell you his. The business that you own is economically stable, however, Mr. Market has incurable emotional problems. At times he feels euphoric and names a very high buy-sell price because he fears that you will snap up his interest and rob him of imminent gains. On other occasions he will name a very low price, terrified that you will unload your interest on him and saddle him with unimaginable losses.

Mr. Market has an endearing characteristic: he doesn't mind being snubbed. If you ignore him today, he will show up with a new offer tomorrow. Transactions are strictly at your option, the more manic-depressive his behavior, the better for you. But like Cinderella at the ball, you must heed one warning or everything will turn to pumpkins and mice: Mr. Market is there to serve you, not guide you. It is his pocketbook not his wisdom that you will find useful. If he shows up some day in a particularly foolish mood, you are free to either ignore him or take advantage of him, but it will be disastrous if you fall completely under his spell.

Mid November Update

So it's been roughly.. 40 days since I started trading options.

Haven't posted each move play by play like I did when I first started. It's amazing how fast you can learn in even such a short amount of time. At least to articulate each move in the beginning, I felt like I sort of knew what I was doing when in truth, it is always in the beginnings where the utmost frailty is. Beginnings are such tender times.

I'm sort of humbled to just kinda wheeze and gag through small trades of 1 contract or wow, lo and behold, a FIVE contract strangle on natural gas..amazing how this is all done in like the the 15 minutes before I walk to work, or during my breaks/lunch.

It's incredibly liberating to know that wow, my investing and dollars is wholly in my own control. It's not quite the same "I earned this" type of feeling as hustling at the Flea Market or working for tips in restaurants or something, but it's like wow, I was dependent on no one else and the whole shebang was just traders selling and buying agreements between each other.  Like I agree to purchase the option to buy this stock at this price in the future. Or I want to buy the privilege of buying this commodity at this future price.

It's nice to go to work with gains that came in from pressures in overseas markets and then New York opening up while I'm still asleep. It's incredible. One fat digital global village.

Even with my modest gains in a little over a month.. let's see... at this very moment, my year to date earnings are 33.03% with only one position active in my account (silver January call option, heheheh). Damn, 1/3 profit. Made safely with delta-hedging and non-directional trades. I didn't gamble, I invested and was positioned to profit no matter which way anything went.

Dang... just humbling how simple this is. A middle schooler could do this, shoot my 10 year old cousin could do this.

And even with straddles and strangles, I haven't gotten into crazy sexy strategies with spreads and range-bound trades...selling options and collection premiums, covered calls, iron condors/butterflies.. just like whoa, there's a long way to go.

I feel lucky to at least be a part of volatile market and have the experience to recognize as such. Like, wow, thank you Robert Kiyosaki for all the philosophy and education to do all kinds of business stuff, investing, and commodities. I'm obliged to all the coin dealers and bullion brokers I've met and done business with. Huge props to my man Greg for being one of my first friends to go into options and wow, without Jan, I'd probably have signed up for some uber expensive options education class and spent all the capital on a lecture that I could've read in a book. =P

Alright, for my next number..

Go back up and check out the uploaded pic of my account, on the right there's a chart of UNG, natural gas. Check out that pattern and tell me if it looks like the picture below. =)



This is a head and shoulders pattern... typically it indicates an impending downward movement..

ahh.... =)

Mhmm...

Been trading faster than I can post.

Um, wow, silver is going nuts.

Thank you Ben Bernanke and President Obama for making this possible with your inflation crazed monetary policies.

for trade #2, the targets are:

= 20% gain on the call or put option that is riding the trend

=15% loss on either call or the put due to time decay or stagnation, unless the winning side has been sold for an excellent profit and the losing end is held strictly as a free (paid for) lottery ticket

Happy Halloween yo! Love this holiday, prob. favorite. =)

      Orders Placed - Pending the opening of the market in the next couple hours

Options Strategy = Strangle on Silver ETF's (December expiration)

      More in-depth info coming after orders are executed, stay tuned!

Still looking to go short the Nasdaq, just in case anyone was wondering why I left it out still.