Investing in stock market indices via option spreads beats buffet?

[Martinghoul]

Thanks. Make sense. So I should look at volatility as a major component of risk and perhaps add a few other factors.

My question for you sir is: Are there any technical indicators that can supplement volatility to get a better risk management. For example, if I sell a call option that has a high volatility (indicate riskiness) I should sell it when technical indicator signifies a resistance/peak?

Regards,

You should look at volatility as an imperfect estimate of risk.

I don't know of any technical indicators/rules of thumb/etc which can guide your risk management. Experience and a deep understanding of the nitty-gritty of the mkt are the only ways I know of which can give one insight into risk.

 

[Trading Education Buyer]

would investing stock market indices call spreads offer returns greater than investing in stock market?

View attachment 166661

It produces 50% a year

 

[smallStops]

I don't know why, but when reading this title I could not help imagining
Warren Buffet being very bored for some reasons, pop in ET and reading your title thread, and automatically
laughing and saying "are they making a joke about me".

 

[Trading Education Buyer]

I don't know why, but when reading this title I could not help imagining
Warren Buffet being very bored for some reasons, pop in ET and reading your title thread, and automatically
laughing and saying "are they making a joke about me".

I imagined that trading call spreads beats Buffet , but I did not know by how much , I was waiting for back tests.

None of the baboons responded cause I know the intelligence level here , so I had to do it myself.

If you start with 20k , it produces 9,000 a year without compounding

 

[smallStops]

If Warren Buffet was really bored and looking for something to cheer him up,
he'd be laughing under his table, and say "when is this joker going to try it with real money and find out what really happens in practice".

 

[Trading Education Buyer]

If Warren Buffet was really bored and looking for something to cheer him up,
he'd be laughing under his table, and say "when is this joker going to try it with real money and find out what really happens in practice".

My live account is trading it.

 

[smallStops]

My live account is trading it.

Keep us posted about the upsides , and most importantly the downsides!
The upsides in trading are not really the issues, the real ones are the downsides.

 

[Trading Education Buyer]

Keep us posted about the upsides , and most importantly the downsides!
The upsides in trading are not really the issues, the real ones are the downsides.

emotions down side , trying to take smaller profits , greedy for early profits ,fear of missing out on profits


It is not the system , it is usually the idiot trading this system .me

http://www.businessinsider.com/colin-camerer-wins-genius-grant-2013-9?IR=T

 

[smallStops]

The like is for self-honesty.

 

[Trading Education Buyer]

back tests