I drifted away from this blog a while ago. My investing was boring. How these guys who have no positions of their own, can successfully work on securities trading, is a mystery to me.
The current strategy is to make small high risk bets (yeah that's right, call it for what it is, gambling) and expect to lose a bunch of them. How does this work? Let's say I have $8,000.00, and I decide that around $500 is the size bets I'm going to make. Further, I won't increase the size of bets until the gambling capital reaches $25,000.00, at which point I'm thinking I will increase it to around $800. How do the numbers work?
My current bet cost $400 + $55 = $455. I put the money down around a month ago, and it's value right this moment is around $2,500. Not cashing out is really hard, but I see it at around $3,000-$3,500, perhaps today, but for sure this week. Obviously, it's puts or calls.
Let's say I set my target at 75% per bet. If you make a bet you get back 175% of your gamble or you get nothing. Let's further say that you average 2 months per gamble. And finally let's say I can find 4 such bets to make. So they pay around $850 if they win, and $0 if they lose. That gives you around $3,000 at the end of 2 months, or around a 50% profit. Deal is, if you made the right options bet, and you have the guts to hang on to the position, 500% can happen too. What is that magic, how much will this make in a year, number? Enough for me to live on. The critical thing is, DO NOT LOSE YOUR CAPITAL.
I will be starting a couple of lists, they will be blog entries that get edited on an ongoing basis. No one can be on both lists. Most people would not be on either list.
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