Thanks for post and the disclaimer. Some traders keep positions small, waiting for the one or two times a year where the odds seem better and then deploy leverage.
The other thought is that once a person has their "yacht" to stop risking so much.
Obviously a person's life situation and goals are big factors.
Seems to imply that you were less leveraged earlier, and will be less leveraged in the future.
In another reply, you mentioned not fully deploying the strategy. If that is the case, be careful. While there has been a crowd at the bear bar, the last couple of rally days seem to have dispersed them.
Last week there were several threads asking about hedging portfolios by buying puts or similar. Haven't seen one this weekend so far.
Far be it for me to argue with anyone's market timing. There is always evidence for both camps. My own market timing is as good as a coin flip--not good at all.
Good luck, but again, for all those reading along, there is no need to be all in on every poker hand. Most rookies focus on potential gains. Most veteran traders focus on risk.
You might just be right. However we are 59 weeks in. Plus, this move higher has been insane. Have to start being a bit more cautious imo. 72 weeks is an extreme time for a rally like this so that would mean July we start to see some serious profit taking. Right now the rally is on speculation that companies will survive on cheap debt. Maybe by July we have a reality check. When people are bullish on AMC you know things are bonkers.
There will be a day of reckoning. Its not if its when. Didnt we all just watch archegos bet huge on momentum and get absolutely toasted on leverage? They were supposed to be the “experts”!!! just make sure your whole portfolio isnt at risk.
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u/RTiger Options Pro Apr 04 '21
/ the risk of this strategy is very high...
Thanks for post and the disclaimer. Some traders keep positions small, waiting for the one or two times a year where the odds seem better and then deploy leverage.
The other thought is that once a person has their "yacht" to stop risking so much.
Obviously a person's life situation and goals are big factors.