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How to Lose Money

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Re: How to Lose Money

#51

Post by xondono »

aphextron wrote: post #5

>The nice thing about options is that there isn’t just one way to lose money. No, you can lose money in many different ways – far more than I can write on this page. This is the most important lesson of options. It's never just a coin flip. You have an unimaginably huge number of factors riding against your success. It's not even remotely close to a 50/50 win/lose scenario. There are a million ways to lose, and just…

tbh, the problem with options is that you can loose a lot of money that you don't have.

People start to play with strategies without fully grasping how they work, and especially how exposed you are if you sell naked options. It's very easy to fall into the trap of creating an option strategy that even if it has good odds, will require a massive amount of margin.

If this happens to you on a regular retail account, you're going to get crushed.

Re: How to Lose Money

#53

Post by arethuza »

"Stop finishing Projects"

I tried to convince people it was a good idea to have a general purpose bytecode VM as part of web browsers in 1994 - quite glad I was ignored by my employer as they would probably have patended the idea!

Re: How to Lose Money

#54

Post by dna_polymerase »

Method 10: Write an absolute piece of shit article on revue.

I often wonder what motivates people to write certain posts. This piece is filled with opinion and subjective and obviously wrong information, followed by nonsensical motivational fluff. I have no idea what makes the author think that this is a good use of anyone's time.

Re: How to Lose Money

#55

Post by tim333 »

newcrobuzon wrote: post #38
aphextron wrote: post #5

>The nice thing about options is that there isn’t just one way to lose money. No, you can lose money in many different ways – far more than I can write on this page. This is the most important lesson of options. It's never just a coin flip. You have an unimaginably huge number of factors riding against your success. It's not even remotely close to a 50/50 win/lose scenario. There are a million ways to lose, and just…

Options should be used as intended: as a hedge. E.g. If I am net long in my portfolio and I fear some headwinds I can buy a put or two for the peace of mind. Now those puts should be always considered as worthless, and it is just the price to pay for the peace of mind. Similarly you sell options. Trading options on the other hand is just pure gambling. Even if you get the direction right you likely won't get the timi…

You can also write them in a low risk way for the benefit of others. If you hold some stock write options for people to buy it off you for twice what you paid, or if you are thinking of buying a stock write options for people to sell it to you at lower than the current price. But yeah trading can be iffy.

Re: How to Lose Money

#56

Post by tim333 »

superbcarrot wrote: post #35
ronyfadel wrote: post #19

Earlier quoted context omitted.

Yes and no. A Comp Sci./Eng. degree is pretty much guaranteed to get you a decently paying job. My ROI has been > 20x. Learning a 3-5 yr curriculum on your own is a surefire way to get you demotivated and/or depressed.

> A Comp Sci./Eng. degree is pretty much guaranteed to get you a decently paying job. This has been the case in the recent past and is probably still true right now but the trend won't last forever.

Has there ever been a glut of unemployed Comp Sci./Eng grads? I think it's limited by the work being hard and perhaps a bit unglamorous.

Re: How to Lose Money

#57

Post by phildawes »

superbcarrot wrote: post #35
ronyfadel wrote: post #19

Earlier quoted context omitted.

Yes and no. A Comp Sci./Eng. degree is pretty much guaranteed to get you a decently paying job. My ROI has been > 20x. Learning a 3-5 yr curriculum on your own is a surefire way to get you demotivated and/or depressed.

> A Comp Sci./Eng. degree is pretty much guaranteed to get you a decently paying job. This has been the case in the recent past and is probably still true right now but the trend won't last forever.

You can make that argument about anything. How about betting on a timeframe?

Re: How to Lose Money

#58

Post by tim333 »

dna_polymerase wrote: post #54

Method 10: Write an absolute piece of shit article on revue. I often wonder what motivates people to write certain posts. This piece is filled with opinion and subjective and obviously wrong information, followed by nonsensical motivational fluff. I have no idea what makes the author think that this is a good use of anyone's time.

I found it entertaining. Also see HN guidelines "Be kind. Don't be snarky"

Re: How to Lose Money

#59

Post by dannyw »

aphextron wrote: post #5

>The nice thing about options is that there isn’t just one way to lose money. No, you can lose money in many different ways – far more than I can write on this page. This is the most important lesson of options. It's never just a coin flip. You have an unimaginably huge number of factors riding against your success. It's not even remotely close to a 50/50 win/lose scenario. There are a million ways to lose, and just…

Earlier last year around May, when the stock market seemed to pick up after the COVID crash, I purchased a number of deep OTM LEAPs (long expiry options; until early this year). They were incredibly cheap. I often had trouble finding a market maker for those.

I only chucked about $2000 in, but these options have grossed $15,000 in realised returns and $25,000 in unrealised returns.

Options allowed me to make a “bet” that stocks would go crazily up. Options can be a valuable tool if you know how to use it.

Re: How to Lose Money

#60

Post by rozab »

Cthulhu_ wrote: post #24
Pyramus wrote: post #15

Earlier quoted context omitted.

Thats a very US American (anglosaxon?) viewpoint to take. Education is paid for by society in most Western parts of the world.

The US is composed of a heap of immigrants that migrated to the US and to a point intermingled culturally to come up with a new country / culture. The Anglo-Saxons were a people made out of immigrants from Germanic Europe that migrated to what is now England and mingled with indigenous British groups, tracing back to the 5th century. It's often used to refer to the language spoken in England and eastern Scotland unti…

The term has a more complex meaning in America.

https://en.wikipedia.org/wiki/White_Anglo-Saxon_Protestants#...

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