Keep it simple in 2022
In 2022, inflation will stay high, rates will go up, and Nancy Pelosi will continue to trade
. My goal is to grow capital, no matter whether the market is going up or down. I do not want to have a goal to beat the market or Nancy, because the market may go down or Nancy’s trades may go bad. Quantitatively, my goal is always a consistent and positive return at least better than inflation rate. Absolutely, I can achieve that and do better than that with options. Not how Nancy and her husband used it though, because their recent trades are simple stock replacement and betting on those stocks will go up. However, if those stocks go down or even stay the same by their option expiration dates, they will lose money. I am not as rich as Nancy, so I would construct the trade differently even if I agree with their directional assumptions. Why are we making things more complicated? This year, I will use strategies to long commonalities (oil, copper) and short-term rates and at the same time take advantage of time decay. No one can predict the direction of the market or a stock, but one can always keep it simple!
. My goal is to grow capital, no matter whether the market is going up or down. I do not want to have a goal to beat the market or Nancy, because the market may go down or Nancy’s trades may go bad. Quantitatively, my goal is always a consistent and positive return at least better than inflation rate. Absolutely, I can achieve that and do better than that with options. Not how Nancy and her husband used it though, because their recent trades are simple stock replacement and betting on those stocks will go up. However, if those stocks go down or even stay the same by their option expiration dates, they will lose money. I am not as rich as Nancy, so I would construct the trade differently even if I agree with their directional assumptions. Why are we making things more complicated? This year, I will use strategies to long commonalities (oil, copper) and short-term rates and at the same time take advantage of time decay. No one can predict the direction of the market or a stock, but one can always keep it simple!
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70232745 : 的确，今年会是trader的天堂！大波买小波卖。