Take Tight Profits

From a subscriber, MP, on trading on 12/17:

"Listen...regarding the 420 put...I bought today at 15.90 and sold later on at 17.10...

I then bought again at 16.20 and sold at the end of the day at 17.30

Am I alright doing that or would you have waited for more profit? I figured that I may miss a big move but I'm protecting what I have while building small profits...I can always buy again tomorrow on the put if the situation arises...

With this kind of market...I have no idea what the heck is going to happen so I'm just taking profits and getting out...is that a "good" strategy?"

The answer is: YES. Take tight profits. As an example, on 12/18 the Jan420P was available to buy as low as 14.40 and could have sold to 17.70 by 2.30 p.m. EST. These are great profits. By 3.30 p.m. this went up to 21.00, but quickly moved back to the 18.00 range. Profits are fast and fleeting.

In a market that cannot be predicted, where 100 point type moves now can occur in minutes, tight profits are part of the name of the game.

"Floyd, I bought and sold the put three times Wednesday and twice Thursday. My profits this week alone are over 12,300.00, more than I've paid for my one year of Level 3. You have taught me more in 8 months of trading than I've learned in 10 years of trading."
MBD, Georgia

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One in five U.S. households ware behind on their utility bills coming out of last winter, and one in 20 households had their utility service cut off in 2007.

President Obama has a potential trillion dollar Great Depression bail out coming, and I for one just smile at the trillions spent in Iraq in the last 8 years, and the Emperor actually having shoes thrown at him while there.

Be angry about this. We've killed thousands of our own children, and hundreds of thousands of others, are nowhere, and the "war" is now secondary to our economic crisis.

Are we becoming socialistic? Heavens, no. We're trying to keep up with the likes of 50 billion dollar Bernie Madoff, now in ankle cuffs, or AIG and their ongoing parties.

Is the UAW the culprit with the "small three"?....sure, but the real culprit are the idiots that tooled up for Hummers, and have sold lousy cars, and fly private planes to Washington to ask for money:)

Put the blame on Congress, the blame on Supply side economics, and the blame on all of our citizens that have believed this rhetoric. Instead of "bringing democracy to the Middle East, how about stability to the good old USA?