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eddy2

11/12/14 11:20 AM

#116202 RE: Garyst #116201

I'm maybe thinking of coming in again granted I'm under water 10%. I know your suppose to take emotions out of the game and buy low with the hopes of selling high but all my attempts here has not really produced the results I wanted to see for me.


Anyhow I have lots of other pokers in the fire and I guess one should be looking at the big picture not just one individual stock but the whole portfolio and with that I'm well into a 50% gain for the year using stop loss's as well as derivatives offered for the better grade securities I hold.


You do get a lot more hedging opportunities with higher end companies as far as managing ones risk but the rush one gets from the exposure to a $.0001 penny nightmare when your out there fully exposed, naked in the wind so to speak, every things a dangling there is nothing like it.


The only comparison is a derivative exposure over 75% using the banks money 50% collateral in stocks and the whole dang market is tanking and your being called on for more collateral so now your looking for your friends help to leverage your position often giving up half your portfolio that has already been leveraged to the bank for the derivative position. Then one has to know ones numbers to convince those friends that your on the right track but the market has not a clue what is going on.


I never buy puts or calls I'm always a writer of them cause one time is on your side but cost starts to work against you but for some unknown reason investors will keep buying diving the cost even higher to get in cause there saying the company is over or undervalued that I can't argue with at the time but if every one is jumping on board thinking the same the position is going to cost you more ten what your going to get in return and with time running out my gosh it gets crazy.



Another thing to consider is that the shares I use are none registered shares a private placement forcing the outstanding share count higher leading the stock downwards because of dilution and should she go the other way I cancel my write position and up she goes were now I can make money cause I have taken a market position.


There are always friends willing to play a private game of derivatives on the side were I loan my none registered position to the group at a cost as well to be a member of the group you have too be worth more then a million but state laws are going to up that figure they say to two million and that is assets that have no debt that can be borrowed on too cover the position.


Well I'm sure this is boring to most reading this but to be a good trader you have too have a feeling of what goes on behind the curtain that a company that has no revenue now can create revenue.