Did you act when the market was down?
From 8/16 to 8/21 we had a move down in the market. Mostly it was due to sensationalist news reporting on a couple of issues. When the market is driven down by stories about things that “MIGHT” happen, it is almost always a buying opportunity. The August downturn was one of those periods. I bought a lot during that time, and now I am reaping the benefits of it. The study of market history is so important because it gives you an understanding of cause and effect, & based on history, the most probable market reaction and recovery. Today, I am selling calls on positions that were acquired a couple of weeks ago. I like to wait for nice up days to sell calls, just like I wait for down days to sell puts. Sold new covered calls on F, DOW, LUV, CERN so far today. How about you? Did you buy last month when things were on sale? If not, what kept you from acting?
- S Prev