It's not a problem because you are only looking at one side of the coin. What happens if the trend continues up well past 105?
It's the risk-return tradeoff.
I recommend a newb open a trading account with $5k. Then trade 'til your hearts content. You'll likely lose it, but it will be the best education dollars you've ever spent.
The real education comes from losing. And winning early can really fuck you up.
The buy-in would have been a great weapon, instead of the stupid short-selling ban.
If there was a hard-line that dictates one or the other of the following MUST happen:
1. locate
2. buy-in
there wouldn't be a need for a ban
Good question. An average option trader will have a long-term return equivalent to broad index he/she is trading against LESS spread and commissions (hence negative expectation). It's the closest I can come to define average.
This statement is also slightly illogical:
"The majority of...