You Don’t Have To Be Right

So perhaps it's just a bit ironic that I would post something about doing well in the market last Thursday, just before Friday's fairly significant selloff. More ironic still is that the stock I chose to use for illustrative purposes, Google (GOOG), took a significant dump to close down over 39 points on Friday. Wow. Well, I didn't lose a penny. In fact, on Friday, four of my option positions on the SPX expired worthless, just like I wanted. Why do I want that? Because when I opened those positions (spreads), I did so at credit, i.e., my sold position was worth more than the position I bought as a hedge. Today, I opened several more positions, all at a credit (meaning, I get money instead of pay money when I trade), and all-in-all, since just before the beginning of trading Friday, my account equity has increased right around 9%. I'm bragging, right? OK, listen, I will guarantee you that there are thousands of people out there buying individual stocks and options who just gave the market a bunch of money, and in many cases, money they could not afford to lose. Hell, even very experienced and successful full-time traders....

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Richard Nikoley

I'm Richard Nikoley. Free The Animal began in 2003 and as of 2022, contains over 5,000 posts. I blog what I wish...from health, diet, and food to travel and lifestyle; to politics, social antagonism, expat-living location and time independent—while you sleep—income. I celebrate the audacity and hubris to live by your own exclusive authority and take your own chances. Read More
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