A problem with buying options is that you lose 100% of the money you spend on them if they turn out not to be useful. They have this in common with lottery tickets and insurance.
But losing the money you spent isn't as bad as going to a Paul Simon concert at Forest Hills stadium when they're predicting a thunderstorm. I went anyway, against my better judgement, and then after waiting in a downpour for the concert to start and getting soaked through, I decided that I wasn't going to enjoy it whatever happens and went back to the hotel. Then I came down with a bad case of norovirus and didn't leave the room for two days, and didn't much care to listen to Paul Simon's songs for quite a while after that. So it's possible to do worse than not using an option.
Look forward to the follow up. There’s a lot of bullshit disguised as math in options trading. Bottom line is that a lot of people (maybe most now) have not experienced a true, vicious bear market. Maybe we will never have one again, because the gov will do anything to print money and bail out the market. But if we do, a new generation will get sliced by trying to catch a falling knife.
It’s easy to make money with options when the market goes one way. Likely a lot of people are pyramiding (winning, betting it all again, winning, betting it all again.). At some point things turn and the same people will be absolutely convinced that they are right — while making losing bets all the way down.
It’s the same mistake people make playing roulette and thinking the next spin has to be black because the last 3 have been red...
I am not sure sometime if you are serious or not. I do enjoy your writing when it is musing about life. First of all I have done both options trading and selling short. I lost money at both activities but they are not comparable, more like apple and orange. And I am not sure if you explain it correctly for a person to learn how to do it to make money.
I was a desperate person in the early 2000s after losing my job and my retirement fund. I found that buying the right stocks with your money is the best.
I learned a lot from strangers on the internet and to pay it forward I share it back on the internet
I do not get anything whether you follow the advice or not, but you could lose money by investing with an idiot (retired software engineer). It might help
A problem with buying options is that you lose 100% of the money you spend on them if they turn out not to be useful. They have this in common with lottery tickets and insurance.
But losing the money you spent isn't as bad as going to a Paul Simon concert at Forest Hills stadium when they're predicting a thunderstorm. I went anyway, against my better judgement, and then after waiting in a downpour for the concert to start and getting soaked through, I decided that I wasn't going to enjoy it whatever happens and went back to the hotel. Then I came down with a bad case of norovirus and didn't leave the room for two days, and didn't much care to listen to Paul Simon's songs for quite a while after that. So it's possible to do worse than not using an option.
(Am I doing this right?)
Look forward to the follow up. There’s a lot of bullshit disguised as math in options trading. Bottom line is that a lot of people (maybe most now) have not experienced a true, vicious bear market. Maybe we will never have one again, because the gov will do anything to print money and bail out the market. But if we do, a new generation will get sliced by trying to catch a falling knife.
It’s easy to make money with options when the market goes one way. Likely a lot of people are pyramiding (winning, betting it all again, winning, betting it all again.). At some point things turn and the same people will be absolutely convinced that they are right — while making losing bets all the way down.
It’s the same mistake people make playing roulette and thinking the next spin has to be black because the last 3 have been red...
I am not sure sometime if you are serious or not. I do enjoy your writing when it is musing about life. First of all I have done both options trading and selling short. I lost money at both activities but they are not comparable, more like apple and orange. And I am not sure if you explain it correctly for a person to learn how to do it to make money.
I was a desperate person in the early 2000s after losing my job and my retirement fund. I found that buying the right stocks with your money is the best.
I learned a lot from strangers on the internet and to pay it forward I share it back on the internet
via this link https://drive.google.com/drive/folders/0B4jbaEbtS2Vvd2g5aGRNLW5KQU0?usp=sharing
I do not get anything whether you follow the advice or not, but you could lose money by investing with an idiot (retired software engineer). It might help