Originally Posted by MagicHef:
Does anyone mind if I talk about options trading in here? I understand if it's seen as outside the purpose of this thread.
Anyway, I've just started out trying my hand at it, and I apparently need to work on my timing a bit. I bought some WMT calls for $214, and sold them yesterday for $346. I was pretty happy with my 62% profit in a few days.
Today, WMT is up more so I thought I'd check just to see what could have been (probably a bad idea). My WMT options would be worth $1260 today.
Work your system. DO NOT see what would have happened if you operated outside of your system. That leads to undisciplined trading.
Originally Posted by ChiTown:
I'm always slightly impressed with people that can effectively do options trading. I suck at it. I do have WMT stock though and it's done quite well.
Your 62% profit is nothing to sneeze at. Well done.
I'm very new at it, so it remains to be seen if I can do it effectively. So far, I'm only doing it with companies I trust (AMD, AAPL, MSFT, WMT, etc), and I'm doing calls about 3 weeks out. I buy dips, figuring that a company like Microsoft will go up sometime in the next 3 weeks, even if it isn't immediately.
So far, I've been at it for about a month and I've made about $900, while only investing about $1,000 at a time. If it does turn out to be an effective strategy, I'll start using more of my money for it. [Reply]
Originally Posted by Buehler445:
Work your system. DO NOT see what would have happened if you operated outside of your system. That leads to undisciplined trading.
At 62%, do your thing man.
I'm still figuring out my system, so I figure more info doesn't hurt. However, if the exact same thing happened again I would still sell at 62%. [Reply]
Originally Posted by Hog's Gone Fishin:
So , is this a good strategy???
Find mutual funds that have a really good return over the last 1 year/ 3 year period.
Pull up their portfolio and look at their top holdings
Invest in their top three since they are driving the return they're getting.
For example : ARKW which is actually an ETF is 62% 1 year and 41% 3 years
Their top 3 holdings are TSLA, SQ, ROKU
All have blown away the market over the last year.
Thoughts?
It seems kind of brilliant to me.
I always fight the urge to assume that things will even out, and so I should buy the laggards since they'll eventually catch up. But it seems like the overperforming stocks will overperform for a decade or more without slowing down. [Reply]
Originally Posted by Rain Man:
It seems kind of brilliant to me.
I always fight the urge to assume that things will even out, and so I should buy the laggards since they'll eventually catch up. But it seems like the overperforming stocks will overperform for a decade or more without slowing down.
I agree. I've been going through my stocks lately and selling off the lagging ones and buying more of the ones that have done well. It's always tempting to think that the lagging ones are just a few days away from making more money, but it makes it pretty clear if I look at what I'd have now if I had made the switch a month or two ago. [Reply]
Originally Posted by Rain Man:
It seems kind of brilliant to me.
I always fight the urge to assume that things will even out, and so I should buy the laggards since they'll eventually catch up. But it seems like the overperforming stocks will overperform for a decade or more without slowing down.
Yeah , there's some truth to riding the winners. [Reply]