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Not sure if this is answering your question or not, but I'll tell you a rough outline of what I do. This is really more about the mechanics and decisions of trading, rather than the reasons behind the trade. I can remember the reasons pretty well, so I don't keep that kind of a log. If...

Hey, Cutten, A fair point. Yes, this passion is a required element.

These people are all bought and paid for. I wish to be wrong, but I think they are puppets, every one.

As usual, there is no shortage of people telling the OP that he cannot do something..... burtonridr, you mention options--read Larry McMillan's Options as a Strategic Investment. It's a tome, so I suggest getting pretty comfortable with just the first six chapters. Then cruise over to...

Buy away. Just don't sell any until you have some practice under your belt.

MMT

I doubt if there is a simple or closed-form solution for this--you would have to calculate a bunch of conditional probabilities

what about some of the more conservative, non-leveraged or lightly leverages closed end funds that trade high grade corporates or treasuries or both

I'm surprised no one has mentioned that a small business owner has all his eggs in one basket. A trader never has to do that, but can diversify across trading techniques, markets, etc. and can keep cash also. The independent trader does not have to pay employees, so there is no cash drain when...

I don't trade stocks much; I'm an options trader so that's the only arena in which I can help you. There are several options Web sites that will do this for you. For example, go to condoroptions.com. You can subscribe to their newsletter (I don't subscribe to it, but I suspect their...

I totally agree with you. However, I don't think he is asking our opinion about a career in trading--he seems plenty smart enough to make up his own mind. He asks some excellent questions. Subjects that are interesting in school do not always play out the same way in the real world. I do...

Do you have access to an option calculator? Put some LEAPS in and change the implied volatility. You will see how extremely sensitive they are to this factor. You will want to get this to work in your favor Generally, one wants to buy them when IV is low/rising and sell them when it is...

I also think you would enjoy McMillan's other book, McMillan on Options. It is not just a rehash of the bigger book. Mary

I'm not a Mac fan, Apple owner, or anything like that. I do know a little about pancreatic cancer, though, and the prognosis is extremely poor. Jobs will not be coming back in six months--he may not even survive that long. Now don't come unglued--I'm just the messenger. For the sake of Jobs...

Agreed. If volatility calms down by the earnings date or in connection with the earnings (a big if), consider the long straddle if you like to gamble a little. I thought of doing this when that hormone imbalance baloney came out, but vol has been too high for that kind of play. Pancreatic...

Mark, Truly enjoying your new book. I have two questions about insurance and neutral trading. If others wish to chime in I would welcome comments from anyone. 1. In this atmosphere, I have been trading (wide) butterflies. I have much more experience with them than with condors, so I...

BTW I applaud your approach. The worst case is the first thing to figure out.

There are two other things to keep in mind. One--realize that even though your amount at risk is smaller in the spread than the naked put, the tacit assumption here is that you do not use the rest of the margin you would have had to set aside for the NP in order to place other spread...

Agree that probability and statistics are the best preparation for trading. If you are mathematically inclined, also sit in on stochastic processes to get the flavor.

Curious as to what people think of Stephen Leeb, if anyone has read him.