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Re: gfp927z post# 6013

Sunday, 01/01/2012 10:18:36 PM

Sunday, January 01, 2012 10:18:36 PM

Post# of 19856
GFP,
A trick to avoiding a big loss on your early system buy signal:

Take a full or half equity position and also buy some in the money put options 2 or 3 months out. The puts are insurance. Yes, they are expensive, but they protect you too if you're early as I was on SLV at $28. Bought some 29/26 put spreads. It has limited my downside and kept me in the trade.

Ideally, you double down, after an uptrend has started, then sell the puts when you're confident you have a winner.
MF4

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