Which way? A Gold Timing exercise
- Thread starter themickey
- Start date
First, I have investments all over the place...Including gold and silver coins. I have a small investment in RING (gold mining stocks). I have some written covered calls on them...Which should expire out of the money. I am sitting there waiting to do more covered calls on the other stock.
So, I'm waiting and waiting. I collect a .5% dividend...Waiting and waiting. At some point I will sell these options.
But I believe time is on my side. With inflation, money printing, gold and silver going nowhere, I'll bide my time. I can afford to. Usually if a dog (I own) goes up a bit, I would write a covered call on it. But of course it would rise 30-50% over the call cycle. I would pick good stocks, but not be willing to hold tight till the time was right (example Charles Schwab). So I will wait for a 20% rise in gold before I make a move. Just me...
So, I'm waiting and waiting. I collect a .5% dividend...Waiting and waiting. At some point I will sell these options.
But I believe time is on my side. With inflation, money printing, gold and silver going nowhere, I'll bide my time. I can afford to. Usually if a dog (I own) goes up a bit, I would write a covered call on it. But of course it would rise 30-50% over the call cycle. I would pick good stocks, but not be willing to hold tight till the time was right (example Charles Schwab). So I will wait for a 20% rise in gold before I make a move. Just me...
More for trading than long term investing?
The trouble with long term investing (if you invest unwisely like I did) is it can turn from buy & hold to buy & hope.
Why should investing be any different? Longer time frame, wider stop.More for trading than long term investing?
The trouble with long term investing (if you invest unwisely like I did) is it can turn from buy & hold to buy & hope.
Most always (those who only go long) think about the moves higher they might miss, never conceiving of the moves lower they might avoid.
That's just a bs conclusion you made up. The most delusional traders of any type are constantly shorting everything. We see it on display here all the time.
Touched a raw nerve have I?
Anyway delusional traders and/or investors are those who don't use stops at all - long and yes those who go short too. Happy.
Even for someone investing very long term (20-30 years) in an S&P500 index tracker?
Using stops and other market timing strategies could prove counterproductive for the average investor. After all, beating the market isn't easy, even for the professionals.
Again no different. Day trader, swing trader, long term trader or investor of any length.
The only exception is for those investors who don't want to think about it - set it and faaahgetit types.