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Old 03-11-2019, 07:54 PM   #301
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Hi guys, sorry for not being clear, yes my intention was to mean that the PUTs are cash secured, so it is okay if SPY goes down to 150. I am okay to pick up SPY at 250. The reason I want 50% short PUTs and 50% cash is because I am not sure if markets will really go below 250, so the PUTs give me some extra income.

However, all the above now seems irrelevant, markets shot up yesterday like crazy and I sold only 1 PUT, I should have sold atleast 4. Now the PUT price has come down from 8.5 to 6.7.
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Old 03-13-2019, 09:02 AM   #302
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Damn! The market keeps rising. It is as if the natural course of the market is to creep up every day. I wonder is it worth staying out of this market?
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Old 03-13-2019, 09:09 AM   #303
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Damn! The market keeps rising. It is as if the natural course of the market is to creep up every day. I wonder is it worth staying out of this market?
It's a shame the obvious only becomes clear in hindsight.

Scroll down to the "Buy, Hold… Profit?" graphic and view the 1, 5, 10 and 20 year market returns:

U.S. Stock Market Returns – 1870s to Present
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Old 03-13-2019, 09:46 AM   #304
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Damn! The market keeps rising. It is as if the natural course of the market is to creep up every day. I wonder is it worth staying out of this market?
The natural course of the market *is* to "creep up". Over time. Inch by inch. In a bull market, there will be many creep up days with some occasional big down days. In a bear market, there are many down days with some occasional big up days.

In the long run (tm), markets should reflect increases in wealth caused by increases in productivity. These are incremental and build on itself over a period of years and decades. That is why it is so important to realize that the "market" (or more accurately being the market as a measurement of wealth) is not a zero-sum game.

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Old 03-14-2019, 02:19 AM   #305
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The natural course of the market *is* to "creep up". Over time. Inch by inch. In a bull market, there will be many creep up days with some occasional big down days. In a bear market, there are many down days with some occasional big up days.



In the long run (tm), markets should reflect increases in wealth caused by increases in productivity. These are incremental and build on itself over a period of years and decades. That is why it is so important to realize that the "market" (or more accurately being the market as a measurement of wealth) is not a zero-sum game.



The thing is long term can be very long. Just like we had a 10 year extraordinary bull run, what if we have a 10 year bear market and still in the long run, we will be okay. But how many of us will be patient for 10 years?
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Old 03-17-2019, 06:40 PM   #306
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The thing is long term can be very long. Just like we had a 10 year extraordinary bull run, what if we have a 10 year bear market and still in the long run, we will be okay. But how many of us will be patient for 10 years?
Not many. But I've been investing since 1978, so I've seen my fair share of up and down markets.

So, have you sold everything?
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