Options for Rookies

Privacy Policy

2013-01-02T03:04:00-06:00

Apparently I'm forced to post a privacy policy, so regular readers can feel free to ignore this.

But know this: I will never provide your e-mail address or other contact information for any reason.

Third Party Advertiser Cookies and Web Beacons

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A "cookie" is a small amount of data, which often includes an anonymous unique identifier that is sent to your browser from a Web site's computers and stored on your computer's hard drive. Cookies can be used to target advertisements relevant to your interests, based on your visits to different Web sites, to provide traffic measurement and other analytics and to conduct research.

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When your browser requests a page that displays advertising from one of the Advertisers, the Advertiser may view, edit or set its own cookie through your browser. In addition, the Advertiser may place its own Web beacon in the page, which may be triggered by your browser's request.

Advertiser Privacy Policies

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Last updated: March 16, 2009

Will There be Live Trades at Options for Rookies?

2010-02-08T05:00:00-06:00

Normal - options related - blogging returns tomorrow.

Thanks or bearing with me during my dilemma.

Due to numerous requests, I've been considering using Options for Rookies to post, and then follow, a specific, simulated trade. I will not trade the position in my real account). This is the plan:

Post a trade, with rationale for making the trade

Post periodic updates, as needed - if the position remains unchanged

Discuss any interesting aspect of the trade. I anticipate that most of the discussion will involve adjustment or exit decisions

Readers comments are an essential part of this exercise - especially when you don't like an action I took (or decided not to take)

- My recommendations should not be considered as gospel
- Alternatives should be discussed. Please fell free to express your thoughts
- We each have a different comfort zone and that means the same position would be handled differently by other traders
- If you don't participate in the discussion, it becomes less of a learning experience for rookies

I repeat: The purpose of the exercise is to provide an educational experience for readers. It is NOT to suggest a profitable trading opportunity for you.

That's the truth. Please believe it. I suspect that no matter how often I repeat that sentence, there are those who will make the trade in their own accounts, seeking profits.

No records will be kept of profits and losses. When the primary objective of a trade is to turn it into a lesson (when feasible), then earning a profit becomes secondary. I don't plan to lose money on purpose, nor do I intend to take extra risk just because the trades are imaginary. However, the need to have a winner is not as strong when an important lesson can be taught in lieu of grabbing a quick profit.

The primary purpose of these trading examples is to make it easier for rookies to think about, and understand how certain trading decisions are made. Or least how I would make them. If you participate, we all get to see how you would handle specific positions. Feel free to criticize.

***

That's the plan.

However, I don't have time to add additional features to this blog. I love writing Options for Rookies and communicating with readers, but have run out of hours in the day - as discussed three days ago. I requested reader input and received some very welcome suggestions.

The readers who responded to the poll were split evenly. The question was whether you would be willing to pay a small monthly subscription to have access to an additional blog. Although 'no' received the most votes, there were two categories of 'yes' votes, plus another that represents an unhappy 'yes."

The response convinces me that there is more than enough interest to make a premium blog viable.

There are no immediate plans to make changes. It takes time to get a new blog up and running - especially when no content has been prepared.

Thus, for the moment, there will be no changes at Options for Rookies, and I will do my best to keep up with questions.

Planning for an additional blog is ongoing.

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VIX Graph Feb 5, 2010

2010-02-06T00:01:00-06:00

Feb 5, 2010

VIX spiked again this week as downside volatility returned to the market. Although the end of day market rally provided some confidence, VIX closed above last weeks high.

The Dilemma at Options for Rookies

2010-02-05T05:00:00-06:00

A few days ago, when beginning a reply to [Here's the reply], I realized I had reached a turning point.

When responding, my goal is to move the questioner from a state of confusion to one of enlightenment. That may be overstating my abilities, but it is the objective.

I'm trying to solve the reader's immediate problem and make it possible for the person asking the question to experience an 'aha moment' in which he/she now understands the answer. I prefer not to provide a brief reply that offers only immediate gratification. I'm hoping the reader can handle a similar situation the next time it appears.

I receive many words of appreciation, and the positive feedback is appreciated.

These loooong questions have become a problem. They cannot be answered in a few minutes. Look at the length of the aforementioned question: It's a whole blog post by itself.

As Options for Rookies grows in popularity, the number of comments and questions increases. I love it and welcome every question. But how can I find the time to reply when so many of the answers are complicated? I must devote part of my work day towards earning an income. And that's the dilemma. My trading has become limited due the time devoted to the blog - and other writing.

I was told (very soon after I began this blog) that providing lengthy, detailed answers was going to get me into a pickle. Well, it's happened.

To date, I've replied to each question, whether it arrives via e-mail or through a blog comment (preferred method). I no longer have the time to do justice to all.

One solution is to reply to some questions and allow the others to go unanswered. However, I owe a debt of gratitude to each of you as a treasured friend. I don't want to pass over your questions.

I don't know how to proceed.

ADDENDUM: Immediately after finishing this post (last week), another question arrived. It was a good question about kite spreads and required more than one-half hour to reply. I timed the reply (35 minutes) and came to a clear decision: The day is too short to reply to all questions.

***

After due deliberation, I believe I found a viable solution. Your input is sought. No final decision has been made.

I. Options for Rookies continues with one change:

All comments are welcome

I will respond to questions, if a couple of sentences suffices

Unless I deem the question of general interest and convert it to it's own blog post, I will not reply to questions that cannot adequately be answered briefly

Some unanswered questions will be answered as described below

II. Begin a membership blog:

New, special content will be included in the membership blog

After many requests from readers, I'll be following live trades. More details on this topic - Monday, Feb 8, 2010
I'll experiment with live interaction with members, if I can master the technology (Upstream)

Q & A sessions

Mini-lessons or short webinars

Video posts of unknown content. I don't know what to include here

Answers to some questions from Options for Rookies

Answers to all questions from Options for Rookies, if not overloaded with questions on the new blog

No Google ads to get in the way. In fact, no ads, period. A cleaner look.

When asking for a subscription, it's important to me that readers believe it's a fair and reasonable request. Please participate in this poll:

If site is started, I guarantee: fee will never increase for a subscriber

Which are most important (check up to 3 items) in membership blog?(answers)

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What other bloggers are saying

2010-02-04T05:00:00-06:00

Interesting post by the Masked Financier

"Garry Kasparov, the legendary chess champion has written a fascinating article entitled “The Chess Master and the Computer” in the New York Review of Books...Kasparov makes some remarkable comments with relevance to the Texas Holdem Investing concept and how perhaps poker may now be the best game for teaching risk.

According to Kasparov learning poker can teach people that there are no rewards with out corresponding risk. This is one of the most vital lessons that must be learned before putting your money at risk in the investment world. Texas Holdem Investing shows how to systematically approach learning poker so that you can embed this lesson into your mental circuitry before swimming with the investing sharks."

***

Please forgive me. I had a very emotional day and cannot write more. I'll be back tomorrow

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