Dumbest biotech trade of the year if you are long - But Visium & Perceptive have bought calls and puts per their usual 13F filings... they are probably hedging with the stock.
http://www.sec.gov/Archives/edgar/data/1377452/000119312509028258/d13fhr.txt...
Usually marketmakers have 100s of stocks that they make a market in. So their Event risk is never too high and their Market risk is hedged with futures.
Then their is the option writing/buying component to this- buying OTM options and selling ATM... or viceversa. Long puts but hedging with...
I spent alot on bond books-
The best one for begineers is Christine Ray's "The Bond Market"
You should probably trade various inverse long bond funds so you dont lose your shirt first.
There is TLT ETF you are probably best suited for, and a Rydex inverse long gov bond fund.
You shouldnt listen to your friends - what do they know about your business?
Technical analysis is about risk management. And good risk management is only limited by how liquid the market is.
But anyways, ask your friend, he should know better.
Aeliodon- you should monitor peoples behavior when you tell them something that comes true- the vast majority will run the other way.
And if you come across people looking for a guru, they'll be telling you what to say about the Markets in no time.
So either way you're screwed- so focus on...
If I am in the UFC and I punch a guy so hard in the face that I break my wrist or hand, it doesnt mean that simply not punching him hard will allow me to win....
put it this way- if someone is able to make money going with the trend or against the trend, then someone is probably losing by doing neither. That should answer your questions - yes, but with risk of course.