Hi, Folks
Terry has had 19 adjustments since January, on "Boomers Revenge" that's just one of his open group trades. These are rolling and some debit close/open adjustments so just brokers fee's becomes a pretty hefty hurdle to overcome.
Stan
--- In OptionClub@yahoogro
>
> Jack,
> Â
> Unfortunately it has been a long misguided journey for me and over the last ten
> years that I have been at it has not really paid off for me as well as I would
> have hoped. It was not until that last few years that the proverbial light bulb
> was lit and I started to understand what it really takes to run a trading
> business. The unfortunate part is I suffer from extreme analysis paralysis and
> can not seem to really get anything down on paper that I could consistently
> follow to become profitable (I have been profitable every year but you can't
> really grow an account when your best year and worst year is single digit
> returns).
> Â
> I, like MANY other people went through (and still going through) all the classic
> stages of learning the skills required for trading.
> Â
> 1. Blatant refusal to be believe other people when they tell me that the
> trading service providers won't help me make a million dollars out of my meager
> $5,000 account balance.
> Â
> 2. Thinking that using every indicator under the sun will some how give me an
> edge over everyone else.
> Â
> 3. Trying to invent a Holy Grail system that works consistently every year, in
> every market, and in every market condition
> Â
> 4. Thinking that taking on a little more risk won't blow up my account because
> I am some how different than everyone else and the emotions that I am feeling
> are not really fear and greed.
> Â
> 5. Instead of focusing on a few instruments to trade and focusing on a few
> strategies I jump from one "hot" stock to another and have tried everything from
> covered calls to double diagonals.
> Â
> 6. I could probably go on forever here but then we would be missing the point
> :-)
> Â
> So here are the rules that I think everyone can agree on:
> Â
> 1. Keep it simple
> Â
> 2. Use Position sizing - I have read Van Tharp's Position sizing book and great
> book if you want a TOTAL picture on money management but for options on equities
> I can save you some money. 1% or 2% max risk (you can use more if you are not
> ultra conservative like me).
> Â
> 3. I have heard 70% for positions and 30% for adjustments and that probably
> works just fine but again my fear of losing large amounts of money holds me to
> the 50%/50% mark.
> Â
> 4. Use some sort of technical analysis (I am sure this one will be debated
> until the cows come home but this is my opinion) - statistics are a funny
> thing... some times they are right and sometimes they are wrong.. .but you want
> to at least know that you are seeing the same picture as everyone else. Even
> though Van Tharp can show examples of a coin flip trading system making money
> over the long terms.
> Â
> 5. Focus on a few trading vehicles and really get to know them... paper trade
> them for a year or more if you have to. I am following IWM, OIH, TLT, EEM, DIA
> and SPY.
> Â
> 6. Focus on no more than two or three trading styles until you are consistently
> good at them. - I have currently abandond all directional trading and now use
> calandars and butterfly's (when beta weighting these positions the fly's offset
> the calandar vega so the over all portfolio is a little less volatle.)Â I like
> theta decay but this may not be for everyone... it is fairly boring.
> Â
> that is all I have time for today... if any one out there has two cents then
> please post away.
> Â
> thanks,
> Â
> Joey
>
>
>
>
> On February 27, 2010 at 2:39 AM jackcrawford72 <jack@...> wrote:
>
>
> > Â
> >
> >
> > Â
> > Trading is 70% Money Management, 20% System, 5% avoiding emotion, 5% dumb luck
> > :-)Â so if you don't get the 70% part right then you don't have a chance
> > making it long term. Â
> > Joey,
> > Would you care to share your Money Management rules? It seems like you have
> > been doing this for quite a few years and probably have some good advice.Â
> > Maybe a good reference.
> > Thanks, Jack
> >
> > --- In OptionClub@yahoogro
> > >
> > > I paid for Terry's tips around 2000-2003 before the "mighty mesa strategy"
> > > was
> > > "invented" and can say that Terry's program is a very poor example of trade
> > > management. He claims to have years of experience but back then he
> > > certainly
> > > did not convey very much of the experience that I would expect to see.ÂÂ
> > > Over the
> > > last nine years that I have been studying the art of trading I believe that
> > > I
> > > have come to the appropriate conclusions that brought me to this group in
> > > the
> > > first place. Trading is 70% Money Management, 20% System, 5% avoiding
> > > emotion,
> > > 5% dumb luck :-) so if you don't get the 70% part right then you don't
> > > have a
> > > chance making it long term. ÂÂ
> > > ÂÂ
> > > With Terry's Tips I monitored his 10K strategy for 3 years and watched as
> > > members lost there entire $10,000 balance for three straight years simply
> > > because the 10K system did not provide any stop loss and frequently took
> > > 100%
> > > losses on positions that were put on and even "doubled down" at times that
> > > ended
> > > up worse than if you just stuck with the initial capital invested. The
> > > only
> > > reason I post these disparaging remarks is because the time period that I
> > > monitored his trades was a very volatile time, not unlike what we are in
> > > now,
> > > which caused his indicators to change directions then get whipsawed. He
> > > went
> > > through a period of giving out free memberships to existing members because
> > > of
> > > the extreme losses (I received two years free).
> > > ÂÂ
> > > No as for the "mighty mesa strategy" if I remember correctly it was just a
> > > bunch
> > > of calendar spreads (or double diagonals) that required a huge amount of
> > > capital
> > > locked up in a single trade which would expose those of us with small bank
> > > rolls
> > > to enormous amount of risk. So unless that has changed I would say that
> > > Terry
> > > is still consistently breaking even or losing money and making money with
> > > his
> > > advisory service.
> > > ÂÂ
> > > On a side note - everyone that posted "if you could make a ton of money
> > > through
> > > an advisory service then wall street would be in trouble" it really does
> > > ring
> > > true.
> > > ÂÂ
> > > Joey
> > >
> > >
> > >
> > >
> > > On February 26, 2010 at 7:18 AM Alexander S alexstjo@ wrote:
> > >
> > >
> > > > ÂÂ
> > > >
> > > >
> > > > Hi,
> > > >
> > > > I was wondering if anyone is using terrystips.com mighty mesa strategy
> > > >
> > > >
> > >
> >
> >
> >
> >
>
To unsubscribe from TheOptionClub, send an email to:
OptionClub-unsubscribe@yahoogroups.com
No comments:
Post a Comment