If you didn't read the link above you've got to read it...
- - - - - - - -
Poker players, business negotiators and sales people know and appreciate the value of a good bluff. Just as it is much more fun to win (opposed to being defeated) it is much more fun to dish out a successful bluff than falling for a bluff.
The stock market has been bluffing investors for months now. Losing hurts, but it might be consolation for novice investors to know that mutual fund managers (supposedly the 'pros') fell for the market's bluff and held a record low of only 3.5% of cash in July 2007. Fund managers were invested to the max right before the market topped and crashed.
Great article. I'm still bearish,base on long term economy crisis, and I always buy puts when Dow up 1000pts from low and average down at every 500pts up. make money either way. Holding long position overnight makes me nervous,holding shorts I feel safer.