tag:blogger.com,1999:blog-30128229.post7760144396379631639..comments2023-09-30T07:11:55.493-06:00Comments on MarketFN.com: PANIC!!!Investment Househttp://www.blogger.com/profile/14771320644915759241noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-30128229.post-68744240157650790832010-05-16T18:12:29.204-06:002010-05-16T18:12:29.204-06:00Thanks, Cojo. There are ways other than dividends ...Thanks, Cojo. There are ways other than dividends to capture the 8% to 10%. Covered calls, for example, can often yield a percent or more per month and the strike sold can change from month to month.<br />Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-20261531736540878012010-05-16T18:11:32.367-06:002010-05-16T18:11:32.367-06:00Thanks for writing Anonymous who suggests a trader...Thanks for writing Anonymous who suggests a trader might ride out a trade until the pain is "intolerable." The question to each individual is what is intolerable pain. I am a believer in having an exit plan that gets me out before the pain gets anywhere near "intolerable" since I know I can always get back in if I have exited prematurely.<br />Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-13429832871383376822010-05-15T19:57:06.438-06:002010-05-15T19:57:06.438-06:00I failed to mention when I made my earlier comment...I failed to mention when I made my earlier comment re: investing -- i.e., that everyone craves three things: high returns; safety of principle; liquidity.<br /><br />One can always get one of the three, risking the other two goals. It's often possible to get two out of three -- after a lot of research and, of course, risking the unchosen goal. But all three? All at the same time?<br /><br />Ah, such a lovely dream....~ Nonahttps://www.blogger.com/profile/04365667143864520037noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-27831207564282868392010-05-15T17:10:22.453-06:002010-05-15T17:10:22.453-06:00"Further suppose, for ease of math, that you ..."Further suppose, for ease of math, that you have $100,000 to invest in that strategy and what you want is a regular income. In that case, you have a vehicle whereby you are getting $8,000 or $10,000 a year and that is what you designed your plan to do. Whether that original investment of $100,000 goes to $80,000 or $110,000 you are still making that $8,000 or $10,000 a year. Is that OK? Of course, the answer depends on you." <br /><br />I know of no investment that continuously and will continually pay a consistant 8% - 10%. When the markets tanked in '08, all the safe dividends tanked as well. Not only did share prices halve or more, but then the dividends were halved, or worse. Many or most have not recovered. Retirees and soon to be retirees were whacked.<br />Love your newsletter.<br />CojoAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-29526450379951292010-05-15T15:54:58.152-06:002010-05-15T15:54:58.152-06:00Part of the plan could (should) be to do nothing w...Part of the plan could (should) be to do nothing when the event trigger is outside the direct impact on the trade in progress, that is, company specific news (unless the loss exceeds the pain threshold you can tollerate). History shows near term recovery can be fairly rapid for those situations hammered by "guilt by association". So, if the pain isn't intolerable be patient and ride it out.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-4570825043694747032010-05-15T13:30:36.386-06:002010-05-15T13:30:36.386-06:00Good points, Nona.
Bill KraftGood points, Nona.<br />Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-53511994144982646312010-05-15T13:30:09.168-06:002010-05-15T13:30:09.168-06:00Well, Anonymous, I guess that depends upon your de...Well, Anonymous, I guess that depends upon your definition of "safely." There are companies out there currently paying dividends or distributions in the 8% to 10% range, in some of which I hold positions. I have always considered the only true "safety" to be a good exit strategy. Remember a lot of folks considered the likes of Bear Stearns, Enron, and GM to be quite safe.<br />Bill KraftBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-15637648965837291032010-05-15T13:28:30.479-06:002010-05-15T13:28:30.479-06:00Thanks, Nona. I'm looking forward to seeing yo...Thanks, Nona. I'm looking forward to seeing you again.<br />BillBill Kraft, MarketFN.comhttps://www.blogger.com/profile/08274803638438137352noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-21552116069052176702010-05-15T12:04:19.159-06:002010-05-15T12:04:19.159-06:00Dear Anonymous,
In investing, everyone craves thr...Dear Anonymous,<br /><br />In investing, everyone craves three things: high returns; safety of principle; liquidity.<br /><br />Guess what? No such thing as all three exists in a single investment anywhere on this earth. No. Such. Thing.<br /><br />That's number one.<br /><br />Number Two: Anyone would gladly take 8 to 10% in today's environment, but there is no such thing as getting such a return with complete safety and liquidity.<br /><br />About two years ago, at the height of the market, I seriously considered buying an annuity. I would have enjoyed about an 8% guaranteed return; the return reset at a higher rate if the market rose but guaranteed to remain unchanged no matter how low the market fell.<br /><br />Too bad I didn't buy that annuity! <br /><br />Instead, I wanted a liquid investment (see first paragraph above)AND had the hubris to think that I could exceed the returns of the market.<br /><br />Lesson learned.<br /><br />Final point: If you're receiving the 8 to 10% return that you would "gladly take" (to quote you) why would you even pay attention to the underlying investment? Indeed, if the principle investment drops steadily, you're actually receiving a higher return. I'll take that!~ Nonahttps://www.blogger.com/profile/04365667143864520037noreply@blogger.comtag:blogger.com,1999:blog-30128229.post-41851282014703956522010-05-15T11:49:00.843-06:002010-05-15T11:49:00.843-06:00First of all, I would gladly take 8 to 10% in toda...First of all, I would gladly take 8 to 10% in today's environment! But where can we safely find that. And stress "safely". What good is that steady income if the principle investment drops steadily and stays there for years to come?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-30128229.post-91888596798275406772010-05-15T11:33:19.837-06:002010-05-15T11:33:19.837-06:00The best money I ever spent to learn how to trade ...The best money I ever spent to learn how to trade options (after making plenty of mistakes) was for your tutoring, Bill. Indeed, when I make more money, I want to come back for another weekend.<br /><br />For example, I need to know more about buying puts. I've made money on my put positions this week, but I need tutoring to learn how to buy and sell puts much more intelligently and sensibly. Yes, I could read a lot of books, but I know (from experience) that tutoring with you will get me to where I want to go faster and with fewer missteps (a.k.a. losses) along the way.~ Nonahttps://www.blogger.com/profile/04365667143864520037noreply@blogger.com