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From the thread: http://www.elitetrader.com/vb/newreply.php?s=&action=newreply&postid=1776388 Related answer (the question is at the bottom) is:

The short answer to the question "Who is losing money on the street ?" is the bagholders! It should 80% of the people! This is an excellent thread. I had to explain points related to the main question of this thread in another thread I started. I will extract my answer from there and include...

The market never said that insiders cannot be bagholders! But it always said that the majority are bagholders. Your job as a trader is make sure you are not on the side where bagholders are standing. So, allow the market to tell you which side to sit on.

I like that. Repairing has the implication that problems are over,while in fact problems can get even worse (for instance if stock goes down to say 50) if there is no floor on the low side. If you choose to do the CCS, conventional wisdom is to do it for at least a break even so that...

If you are bullish, you can try a vertical spread. There are many strikes and months,and therefore many verticals. A quick rule without going in details is: if vol is high you can go for an ATM spread. If vol is low, go for an OTM spread. Everything else, go for ITM spread (in case of bull call...

Majority no. Minority yes. You won't find the edge in books. You would have to find your edge, or lease it if someone wants to lease it to you.

The answer is correct, and the advice is excellent!

I noticed the word bearish in "I am optimistic about its long term prospects despite being neutral-to-slightly-bearish in the near term, so it might not be a bad thing to try and hold on to." So the current long stock can bleed you if it continues down. Did you consider transforming it to a...

Sorry but I do not understand the aim of your comments. Readers will judge what I wrote. Again, my thinking, as per my previous posts, is that bottoms and tops should involve a maximum number of sellers and buyers, with some exceptions (for instance on the way up, when price goes higher while...

That is true, and that is why the market goes down: it steps back to find the buyers. When it is stepping back, it deals with smarter and smarter buyers as these buyers are looking to buy the stock at a price which is lower than the price at the point where volume was high. If I were in such...

Sorry but I just copied and pasted what that person wrote, and I did not mean it and do not meant in a negative way. I agree that it is an auction. I think the stocks auction will lead to the exact opposite of what was written. I think that at the top there should be a maximum number of...

But there are always buyers at the top, and sellers at the bottom. So, what you wrote is not the fact. Check any chart, and you will see a significant number of buyers at the top, and ...

This is a final notice to you for your insults and lies.

All: I have had only one alias. The moderator/Owner knows that for a fact. What do we call someone who fabricates things? Moderator: Please note the additional insults and false allegations. Some believe they are above the rules.

Moderator: Please note this as well as other similar expressions by the quote author and others. It is for the record. As in the past, a reader of fair mind can see who starts what. History seems to repeat itself (I hope not completely).

"He is noticeable for nothing in the world expect in the markedness by which he is noticeable for nothing," Poe once wrote.

I did not check the numbers, but many problems with your offer: 1. Your option is not perpetual. Pick a dictionary and read the meaning of perpetual. 120 years is not. 2. Your vol assumption is too high. 3. Counter party risk should be zero (currently it is infinite.) 4. Make a market at...

You are accurate in the words. The second wording was done in response to a note when it seemed to me that my comments may have been construed as advice. So, let me be clear, I do not provide any financial advice here. Just opinions (opinions can be wrong). But if I were to recommend a...

I will respond to the first sentence, as to the last, the readers will judge the civility and knowledge of the writers. Note the language you are using. I am not advocating or recommending any strategy to anybody. There is no such thing as a strategy is better than another one. But if I were...