Unlike hotpanera2 who wants free passes, I subject my methods to brutal tests to see if they really work. For example, in the recent market giveback since the April 29 high, how has my naked put portfolio performed relative to the averages? If there are weaknesses in my methods, certainly it would come out during the worst of times? This is also a very fair test because as luck would have it, four of my seven open positions have been very poor performers the last six weeks or so - CSCO, BAC, F and GE. The other three have done a lot better - PFE, ABT and INTC. So this is a very fair but rigorous test. At any rate, from the market highs through yesterday, here are the results:
Down 5.4%. Naked put portfolio ($144,380 to $136,525)
Down 6.2%. S & P 500 (1,364 to 1,284)
Down 6.0%. Dow 30 (12,811 to 12,049)
I'm just not one to try and hide bad results. If they truly are bad, I want to know it so maybe I'll know not to believe in the methods so much, etc. But the opposite is also true if my methods can pass all the acid tests with flying oolors.
Remember - during the absolute worst of times during the crash, I didn't duck out. I was there to report all of the losses even when I was down by a third of a million dollars on Pfizer from inception through 3/2/09. That's because I truly thought that the crash was a once-in-a-lifetime aberration and that in the fullness of time, my methods would prove their mettle.
charty goes to dinner at a friend's house. While they eat, the new friend's small son keeps staring at charty. Finally, charty says, "Why are you staring at me like that, young fellow?"
The kid says, "Daddy told me you were a self-made man."
"Well, why did you make yourself like that?"
Like almost everyone else, I didn't think that a 1930's-style credit crunch market crash replete with runs on financials and forced liquidations were possible.
Not in this day and age with deposit insurance, cooperation between countries and a Fed chairman like Bernanke who was a student of the Great Depression.
The options markets only changed for the better at the end of the crash when the damage had already been done.
And the drastic lowering of margin maintenance requirements at my brokerage only dates back to 6/23/10.
> Nevertheless, the report alone sent the stock tumbling by as much as 30% that day.
That is just part of the stock market investing environment.
To claim that you could make money if only the stock market was more rational is disingenuous -- it is what it is and you have to navigate it.
Your statement is as stupid as someone saying, "that river would be very easy to boat if there weren't any rapids."
There are rapids, and if you choose to go down that river by boat, it is just plain silly to complain about them when you hit them.
The moron will never, over time, beat the buy and hold investor. He is, after all, 68 years old and still lags the buy and hold investor by an enormous amount. A complete loser with nothing to show for 68 years other than an inheritance and a house mortgaged to the hilt. A complete joke and loser.