Why I don't short

[murray t turtle]

Way better than I usually do.

Isn't that what we all aim for?

%%
YES;
and if we get part of things like Charles Shultz/Snoopy Cartoon Business , he did much better than 97-99%............................................................................................ Not sure how long it took him to do that.
[ I did not do a anywhere near that in JAN, even if we divide by 12 months]

 

[smallfil]

I don't understand options. When you say returns of 85% I have to assume you mean on capital invested. Are you not then risking 100% (What you paid for the option) to earn 85%

Yes, the whole premium is at risk on a worst case scenario. However, you can close the position if it is not working out. So, I can close an options trade if say, I lose half of the premium amount. Yes, that 85% is on invested capital so, whatever the premium, you got the premium back plus 85% of that option premium. Today, I closed a trade and got 91% for 1 month holding. On an annualized basis that is 91% x 12 = 1,092% on invested capital. Also, had a losing trade that I closed and kept 60% of the capital. I lost 40% of it which is fine. There are times I lose the entire premium but, more often than not, I save a good chunk of capital from losing trades to put into another trade. That next trade could also, be a big winner---way larger than the 85% or 91%.

 

[murray t turtle]

No study. Fire up a spreadsheet and do your own tests. Why would you believe something that has been fabricated by a random online guy?

Do your own research and verify for yourself.

%%
OLD magazine \Tech Analysis of Stocks & CO.............................................................;
Carley , female futures broker, disclosed 20 to 1 leverage with futs/ 3x ETFs 3 to 1 leverage.
Good warning \she could have noted 2 x ETfs or SH which is no leverage.
I like some invesrse ETFs\except the way they profit mostly on spikes + sharp rallies/ but that part of it...........................................................................................
And they keep me from messing with barely profitable or profitable longs............................................................Like SCHW warns ''NOT suitable for all investors'',

 

[GotherL]

I take calls when market is uptrending and puts when the market is downtrending.

You will get burned trying to play one side when the market isn't going in your direction.

 

[murray t turtle]

I take calls when market is uptrending and puts when the market is downtrending.

You will get burned trying to play one side when the market isn't going in your direction.

%%
Sure can;
stop losses keep the main trend heat helpful....................
Including but not limited tp cash ETFs, 2x ETFs, 2xinvesrseETFs may help/something like a short except never can get squeezed. NOT suitable for all investors/

 

[Jdesey]

well, do not shut the door on any strategy. I have an edge for shorting. I use puts to keep maximum loss under 100%, you only need one runaway short to teach you that. For whatever reason I have a skill to find stocks that will go down in the short term. My win rate is 68% on shorts. there is an old saying,,, "stocks take the stairs up and the elevator down" At this time I am almost exclusively a short side trader.