HOT TRADING STRATEGIES FOR A COLD MARKET
Daily Stock Market Equity and Options Trading Commentary

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Monday, January 31, 2011

Return Some Green Betting on the Greenback with This Bullish Option Strategy

Someone once asked me "how have you made the most money playing in the stock market?" I had to think long and hard because in today's market there's no easy answer like the old days "buy and hold", today it's necessary to constantly research and change positions on the market, as the economic environment and other factors change. After I put some thought into it, I was able to come up with one theme that equated to my most successful runs in the market, that is being a contrarian. First of all I'm a big believer of "the trend is your friend", but when things seem to be extremely overdone, I like jumping to the other side and sticking to my guns.

A good question would be when are things extremely overdone? It's just a feeling that comes naturally to most people. One example would have been when the market was melting down in late 2008 and it seemed every person on TV, article online, and even your neighbor, who has no idea how to play the stock market, was calling for an even deeper correction, this would have been a great time to get long the market. Even though you wouldn't have caught the bottom in late 2008 (came in March of 2009), it was an excellent time to be buying stocks.

To continue reading this, view the full article on Seeking Alpha HERE. Sphere: Related Content

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