I am a new trader. I got my start by reading Rich Dad, Poor Dad by Robert Kiyosaki, which inspired me to start my journey on getting out of the rat race. I attended his sales pitch for the Wealth Intelligence Academy financial training and started my formal education with the Master Trader class in the fall of 2008. I consider myself strictly an options trader, especially after the market correction. I would like to be farther along in my trading education but my business as a remodeling contractor keeps me occupied full time.
I've been going naked and short pretty much 100% for the last several months, I'm really getting into being theta positive. We all know the market makers are out to pick our pockets as often as possible, so why not put as many factors in our favor as possible? Time is the first factor we can get on our side. Time decay alone is our single greatest ally when selling options, since it can't move against us and can't be controlled by the market makers. The next factor the market makers can't control is implied volatility, which is really a measure of market sentiment or bias. Historically, volatility ramps up as earnings season approaches and falls after earnings are reported. We can easily use this common behavior to our advantage, since the higher the volatility, the bigger the option premium. I have been putting on naked puts and short strangles exclusively, and slowly building my account back up after some bad decisions early on. It's such a temptation to go "all in" long calls and puts and hope for that huge move that will triple our account, but I've learned the hard way that I'd be better off in a casino, since I would at least be getting some "free" drinks while I lose my shirt.
This blog discusses MY experiences, ideas and MY style of trading. This blog is for entertainment and educational purposes only. The trades discussed here are MY trades. You make your own trades and you and only you are responsible for your trades. Ideas and opinions discussed on this blogare not in any way recommendations to buy or sell securities or investment advice.
FAZ now at $5.60 as of Friday's close. SRS acting funny in the last hour, I may look for another inverse etf on real estate.
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