What Kind of Idiots Left Money on the Table by trying to beat the St?

[william the wie]

I looked at the potential dividends, immediate option premiums and probable future option premiums. My annualized returns after commissions and other fees are a fairly steady 38%. The probability of my doubling my money in any single year is effectively zero. I stay out of the market in Sept/Oct but otherwise I stay fully invested. So, why do so many people lose money thinking they know more than everyone else in the market?

 

[SassyIrishLass]

Too many amateurs in the markets...inevitably they get burned

 

[depotoo]

Too many panic on a downturn and sell low, rather than see it as an opportunity to buy low.

 

[william the wie]

Too many amateurs in the markets...inevitably they get burned

Yeah but how much brains does it take to get into ETFs? Stocks, bonds and REITs in equal measures. You can write puts and calls on them to amplify your returns while ensuring that you buy low and sell high. Just remember to rebalance after expiration/exercise. this ain't rocket science.

 

[william the wie]

Too many panic on a downturn and sell low, rather than see it as an opportunity to buy low.

Buying high and selling low tends to reduce returns but most people swear by it.

 

[SassyIrishLass]

Too many amateurs in the markets...inevitably they get burned

Yeah but how much brains does it take to get into ETFs? Stocks, bonds and REITs in equal measures. You can write puts and calls on them to amplify your returns while ensuring that you buy low and sell high. Just remember to rebalance after expiration/exercise. this ain't rocket science.

It is to amateurs

 

[SassyIrishLass]

Too many panic on a downturn and sell low, rather than see it as an opportunity to buy low.

Part of the drop is computers kicking in also.

 

[william the wie]

Too many amateurs in the markets...inevitably they get burned

Yeah but how much brains does it take to get into ETFs? Stocks, bonds and REITs in equal measures. You can write puts and calls on them to amplify your returns while ensuring that you buy low and sell high. Just remember to rebalance after expiration/exercise. this ain't rocket science.

It is to amateurs

Sad but true.

 

[william the wie]

Too many panic on a downturn and sell low, rather than see it as an opportunity to buy low.

Part of the drop is computers kicking in also.

The running of the stops strikes again.

 

[william the wie]

Think of all the geniuses who bought calls on margin.

 

[Geaux4it]

Big money controls the market. Think illuminati

It goes something like this...

" Hey Rick, hows it going. You on for taking the market down tomorrow? Sure OK, I'll call Jim"

Big money sells and rakes in ma and pa 401's.. Then a determined amount of time later

"He Rick, same ole same ole here. Are you ready to put a bottom in? Sure lets buy and I'll let Jim know"

-Geaux

 

[Zander]

Bought shares of SPXU at 9.91 last week, sold half today at 11.80

you don't have to be "long" to make money .....

 

[SassyIrishLass]

Bought shares of SPXU at 9.91 last week, sold half today at 11.80

you don't have to be "long" to make money .....

Swing trading is a great way to make money, find a mover and the cash rolls in. Just figure out who and how the investment banks are playing it

 

[william the wie]

I've been writing puts and I am hoping they get exercised against me.

 

[Toddsterpatriot]

Think of all the geniuses who bought calls on margin.

Really? What's the margin requirement to buy calls?

 

[william the wie]

never checked I know it is based on total account assets and is usually done only by hedge funds and major banks

 

[Toddsterpatriot]

The margin requirement to buy calls varies depending on account assets?
Why would such a useful tool only be used by hedge funds and banks?

I think you might have some bad info.

 

[MarathonMike]

Bought shares of SPXU at 9.91 last week, sold half today at 11.80

you don't have to be "long" to make money .....

I bought and sold Micron Tech 4 times for a nice profit and then happily sat out the earnings report onslaught. I may buy in again next week as it seems to have been somewhat oversold.