Secret 92HOW TO USE OPTION ADVISORY SERVICES
К оглавлению1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1617 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33
34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67
68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84
85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101
102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118
119 120 121 122 123 124 125 126 127 128
Having written an option advisory newsletter as early as
1973, I have found the secrets of how to use and not use such
services. Many investors who use such services think the services
are a magic bullet, the guru that will lead them to the promised
land. They quickly become severely disappointed. There is no
magic bullet or road to quick fortunes out there. Only you can
lead yourself to high profits.
Option advisory newsletters go out to hundreds and sometimes
thousands of subscribers. Options have very limited liquidity,
and when an option is recommended in an advisory
newsletter, its price is highly impacted. You may have to pay
more than you should for that option play. Or you may only get
trades off when the underlying instrument moves in the wrong
direction, and you will be stuck with a bunch of losing positions.
The key to success in option trading is to stay away from the
crowd, and when you use advisory recommendations, you are following
a large crowd.
Option advisory services should be used as a guide to lead
you to good plays. One of my favorite option newsletters is The
Option Strategist by Larry MacMillan, but I have never used one
of the newsletter’s recommendations. I use the newsletter to give
me ideas from which I create my own trades. One idea or angle
can pay for many times the price of the service.
When using an option recommendation, counter the crowd.
Use a different option on the same underlying instrument, or
enter the position a few days later. Don’t take profits at the recommended
price. Take the profit before the price is hit. Set your
stop-loss further out than the recommended price. Never use the
parameters set by the newsletter. Try to outmaneuver the likely
moves of the other subscribers. Remember, you are at war with
the other players.
The option price is the most important aspect of any play or
strategy. If you can’t get your price, wait till you can or pass.
Never chase after an option recommendation unless the option
continues to be underpriced.
Only use option advisory recommendations that give you a
statistical or mathematical advantage.
Having written an option advisory newsletter as early as
1973, I have found the secrets of how to use and not use such
services. Many investors who use such services think the services
are a magic bullet, the guru that will lead them to the promised
land. They quickly become severely disappointed. There is no
magic bullet or road to quick fortunes out there. Only you can
lead yourself to high profits.
Option advisory newsletters go out to hundreds and sometimes
thousands of subscribers. Options have very limited liquidity,
and when an option is recommended in an advisory
newsletter, its price is highly impacted. You may have to pay
more than you should for that option play. Or you may only get
trades off when the underlying instrument moves in the wrong
direction, and you will be stuck with a bunch of losing positions.
The key to success in option trading is to stay away from the
crowd, and when you use advisory recommendations, you are following
a large crowd.
Option advisory services should be used as a guide to lead
you to good plays. One of my favorite option newsletters is The
Option Strategist by Larry MacMillan, but I have never used one
of the newsletter’s recommendations. I use the newsletter to give
me ideas from which I create my own trades. One idea or angle
can pay for many times the price of the service.
When using an option recommendation, counter the crowd.
Use a different option on the same underlying instrument, or
enter the position a few days later. Don’t take profits at the recommended
price. Take the profit before the price is hit. Set your
stop-loss further out than the recommended price. Never use the
parameters set by the newsletter. Try to outmaneuver the likely
moves of the other subscribers. Remember, you are at war with
the other players.
The option price is the most important aspect of any play or
strategy. If you can’t get your price, wait till you can or pass.
Never chase after an option recommendation unless the option
continues to be underpriced.
Only use option advisory recommendations that give you a
statistical or mathematical advantage.