02-27-2020, 07:57 AM
[/quote]
Good post Mike. When you have time, a good contribution to this thread might be how to hedge your port. Nothing complicated (although I'd learn that if it's worth it). I realize one can just buy a SPY put and watch it go worthless.
/quote]
First off, I am a chartist by nature and only trade fundamentals within the DGI concept. If it moves, I can usually trade it successfully. That said, this is how make money on a down move, not really considering hedging becausing the ratio is miles away from a 1:1 true hedge. That's too expensive.
What isn't expensive is buying VIX calls when volatility is very low. The first chart shows what happens when VIX is in 12-13 area, it goes up every 4-6 months when you can ring the register. The 2nd chart is a period where VIX just keeps on sliding and my calls (and the money I paid) evaporate into thin air. Chart 3 shows SPX for that same time period, making big money here so the VIX call expense is quickly and easily erased from my mind. There is a symbiotic relationship to the market.
I have always been cognizant of having several various cash flow going at once. I'm not rich but at 60 I want for nothing, still work, my wife is a crossing guard. Until I retire (begin collecting at 62) it goes like this, I get paid on alternating weeks, my wife gets paid on the other alternating weeks, another week my rental checks come in and dividends get dripped. At 62, I will add SS to the cash flow and at 65 my wife collects another 50% of my benefit.
After listening to the old Germans my entire life saying it's not how much you make but how much you keep that matters...simple works for me.
Good luck to all!
Good post Mike. When you have time, a good contribution to this thread might be how to hedge your port. Nothing complicated (although I'd learn that if it's worth it). I realize one can just buy a SPY put and watch it go worthless.
/quote]
First off, I am a chartist by nature and only trade fundamentals within the DGI concept. If it moves, I can usually trade it successfully. That said, this is how make money on a down move, not really considering hedging becausing the ratio is miles away from a 1:1 true hedge. That's too expensive.
What isn't expensive is buying VIX calls when volatility is very low. The first chart shows what happens when VIX is in 12-13 area, it goes up every 4-6 months when you can ring the register. The 2nd chart is a period where VIX just keeps on sliding and my calls (and the money I paid) evaporate into thin air. Chart 3 shows SPX for that same time period, making big money here so the VIX call expense is quickly and easily erased from my mind. There is a symbiotic relationship to the market.
I have always been cognizant of having several various cash flow going at once. I'm not rich but at 60 I want for nothing, still work, my wife is a crossing guard. Until I retire (begin collecting at 62) it goes like this, I get paid on alternating weeks, my wife gets paid on the other alternating weeks, another week my rental checks come in and dividends get dripped. At 62, I will add SS to the cash flow and at 65 my wife collects another 50% of my benefit.
After listening to the old Germans my entire life saying it's not how much you make but how much you keep that matters...simple works for me.
Good luck to all!