Quote:
Originally Posted by legion
At least you understand that.
Never bet more than you can afford to loose.
This brings back fond memories of the Black-Scholes model. Unfortunately with options, you can lose more than you invest. IIRC with a short call, the potential losses are unlimited.
I became a finance major in college because I wanted to learn how to get rich quick. Instead I learned that almost everyone underperforms the market over the long term, and the exceptions are people who manipulate the market and/or engage in insider trading. In other words, you can get lucky once or twice, but anymore than that, and you have to be in Congress to avoid going to jail.
Because the market tends to out perform all trading other strategies, particularly when trading fees are considered, I decided my best option is to invest in index funds with the lowest fees and costs. And since I started investing in 2000, I can confidently say that that strategy has sucked, but in theory it has sucked less than anything else.
Like gambling the only way to win after you actually do hit it big is to walk away from the table...
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that's what they want you to think. nothing to see here folks, trust me, you're not smart enough...don't even try....