Humility at High Noon ~ The Risk Averse Alert

Sunday, July 20, 2008

Humility at High Noon

Over the weekend I received the following e-mail from a reader. I want to share it with you because what was said is entirely true...

"Tom, I detect some hubris in your notes. I don't know you, you don't know me. From what I have learned from your website and discussions, I have built up respect for you and your talents. Without doubt. Stay Risk Adverse.

"Buying far out of the money puts with a day or two left to expiration is not risk adverse. Whether it's the house's money or not.

"I offer this as just a piece of the puzzle. You've heard it all before, you've lived it.

"... Confidence in trading is essential, I know. The market may go up or down from here, you may be right with your scenario. ... What I do know, what I have learned from The Beast, is:

"Humility. The Beast rules."

To which I reply...

Guilty as charged!

(Please don't murder me)

* * * * *

© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.

Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.

Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.

There's an easy way to boost your investment discipline...

Get Real-Time Trade Notification!