Saturday, May 9, 2009

About Calls/Puts.

Buying stocks is called investing.
Buying stocks in calls/puts is called insanity.

Calls/puts is a method of gambling; esentially you are telling the market that by date X my stock will reach Y price or better. If it doesn't you lose it all; if it does, you stand to gain a lot from it. The risk is substancial as you can see, and after nearly seven months of investing I decided to try it out with what I considered to be a 'sure thing'.

I have found myself thorughly discontented with the process. The losses are piling; the overall success of my portfolio are diminishing. It's been a learning experience, one that says 'Never, never do this again'. I might as well start lighting cigars with $100 bills; at least my money would provide some comfort in that aspect.

I'm doing well in the stock market overall, but every once in awhile inexperience takes hold and shakes the profits from me like a bully during recess.

No comments: