Greetings members….and welcome back from a fabulous time in Vegas, and then a little time for a Thanksgiving filled with friends and family.
PSW in Vegas had a great turn out, and lots of questions were asked and answered by Phil, Craigzooka, Ron and Pharm. A very big thanks to Savi and LVModa for making the time spent efficient and productive! Now, on to a summary of the presentations.
As always, for any new members, things started off with how to manage a portfolio. The amount that the portfolio has in it is not important, it is how those funds are deployed. When first joining PSW, many think that they should jump right in and start trading with Phil and the like, as every trade appears like a winner. But, that is not what the board is about….it is about sustaining our funds, and letting it grow through time.
With that in mind, The Man Who Planted Trees is where to start the PSW experience.
Instead of writing a summary about the video, take the time to watch it. Think about its message, and how it relates to your investing style.
Being in Vegas, Phil pointed out that the city was built on "being the house." The stock market is nothing more than gambling. One 'invests' in companies 'betting' that the value of that investment will grow with time. If one invests in a stock, why not collect rent on that investment – selling calls and puts against the position. If the company pays a dividend, then that is an added bonus. By selling 'premium,' one is being the house. When selling the puts, though, it is important to remember that one better 'damn' well want to own the stock at that price, or have a counter move to buffer any potential moves in the stock price. Hence, the buy-write method, where one can own the stock for a 20% discount.
This is a simple way to invest (gamble), and it is good to re-evaluate every month or so if the positions are long term buy-writes – meaning out 3 mo or more.
A side note: Apple (AAPL) was a mainstay of many conversations, and it is my personal belief that investors (gamblers) should stay away from this stock. …
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