Conversions and reversals
:eek:
book --> get rich with options 4th edition
- Thread starter konviction
- Start date
:eek:
1. Buy a stock.
2. When it goes up, sell it.
3. If it doesn't go up, don't buy it.
Why the '4th edition'
Didn't the other 3 help people to get rich
Plus, I agree with a previous poster. Any book that concentrates (even by the title) on using something to get rich should be avoided as all costs.
However, any book that tells you successful trading is first about managing risk, that's a book that will REALLY help as it's what the game of speculation is all about.
But then again, risk managment is not what the masses want, it doesn't sell. But what does sell is get-rich-quick-for-as-little-work-and-effort-as-possible.
Didn't the other 3 help people to get rich
Plus, I agree with a previous poster. Any book that concentrates (even by the title) on using something to get rich should be avoided as all costs.
However, any book that tells you successful trading is first about managing risk, that's a book that will REALLY help as it's what the game of speculation is all about.
But then again, risk managment is not what the masses want, it doesn't sell. But what does sell is get-rich-quick-for-as-little-work-and-effort-as-possible.
Quote from traderlux:
....theory smerry nay sayers, i read the book and now i am sending this from my 36 foot cat anchored off an island in the carrib....
....just trade....get rich....dont worry....
Amen brother, Amen!! Run the trades and let the other stuff take care of it's self!! Use the strategies you have studied so hard to perfect and just do it!!
Zero. Expectancy is not the same as probability. Expectancy is the probability times the payoff amount. For an unbiased coin with a $1 risk and $1 reward, the expectancy is:
prob of win*payoff of win + prob of loss*payoff of loss=
0.5*$1 + 0.5*(-$1) = 0
For all 'high-probability' trades--iron condors are the example I used in the other post I previously provided a link to--the higher the success probability, the worse the risk/reward.
...you got it, keep it simple, start small and jump in. vertical spreads as descibed in the book are a good place to start.
i am beginning to think all this theory bs gets in the way. the theory only is valid for a micro-second snap shot in time, and then every thing changes.
life itself is probably a zero sum game, does that mean you stop playing because you cant get out alive at the end?
An acquaintance of mine called me up the other day to tell me how great this book you are talking about "Get Rich with options" is. So I downloaded it, and read through it.
Not a single comment here that 90% of all options expire worthless. He makes comments about time decay etc, but really only to pay lip service. His advice is to buy ATM Calls.... because Delta is supposedly better. But this theory isn't really put to use in a way thats systematic etc... instead its really just a fresh coat of paint over the idea of buying options to avoid paying for stock...
Obviously on big binary events, you want to own calls over stocks, but really, to make a daily, consistent stream of money (which is what the guy who phoned me up seems to believe) it is a flawed approach for both this reader, and the author(because the job of a real author / teacher is to separate you from your stupidity - though for 99% of all people that task is impossible, based on the sheer # of failed traders).
This is the kind of book that fools people into thinking that they have come across a "business model" for trading.
For me, there is only one critical rule of trading:
Do not look for a system/technique/strategy that adapts to inferior psychology.
The author of getting rich with options also avoids most discussion with use of puts and/or puts for portfolio protection.
Given it was updated in 2009, puts are a critical tool to control downside risk. The fact that this is glossed over is likely because the idea of buying calls irrespective of market moves is a convenient psychological escape.
This particular individual, when I mentioned this glaring weakness in the book, didn't seem to care, in fact it was glossed over. The fact that books on options seem to not only convey but also steer people along the vector of an innate stupidity is a real dangerous thing... inevitably, the people reading this book will being hanging themselves out to dry when their calls turn to shit all at once and the Market tanks...
Not a single comment here that 90% of all options expire worthless. He makes comments about time decay etc, but really only to pay lip service. His advice is to buy ATM Calls.... because Delta is supposedly better. But this theory isn't really put to use in a way thats systematic etc... instead its really just a fresh coat of paint over the idea of buying options to avoid paying for stock...
Obviously on big binary events, you want to own calls over stocks, but really, to make a daily, consistent stream of money (which is what the guy who phoned me up seems to believe) it is a flawed approach for both this reader, and the author(because the job of a real author / teacher is to separate you from your stupidity - though for 99% of all people that task is impossible, based on the sheer # of failed traders).
This is the kind of book that fools people into thinking that they have come across a "business model" for trading.
For me, there is only one critical rule of trading:
Do not look for a system/technique/strategy that adapts to inferior psychology.
The author of getting rich with options also avoids most discussion with use of puts and/or puts for portfolio protection.
Given it was updated in 2009, puts are a critical tool to control downside risk. The fact that this is glossed over is likely because the idea of buying calls irrespective of market moves is a convenient psychological escape.
This particular individual, when I mentioned this glaring weakness in the book, didn't seem to care, in fact it was glossed over. The fact that books on options seem to not only convey but also steer people along the vector of an innate stupidity is a real dangerous thing... inevitably, the people reading this book will being hanging themselves out to dry when their calls turn to shit all at once and the Market tanks...