We Lived Big

More on "what I get from trading":

1. Floyd:
> Before I get into "what I get out of trading" I need to provide you with the background of "why" I trade. I started my career on Wall Street 25 years ago. During that time I held various positions within an investment banking environment while obtaining a masters degree and law degree at night. When I completed my law degree, I had the opportunity to work in an emerging field know as Swaps. While derivatives such options had been around for a long time, Swaps were just becoming a "commoditized" product. Despite my vast knowledge of derivatives, I remained a "buy and hold" mutual fund investor, content to take the easy "random walk down Wall Street." However, life was progressing nicely and I was doing well professionally and financially.
> Then from out of nowhere my life began to quickly unravel. Shortly after my smart and beautiful daughter started high school her behavior, personality, and appearance made a disturbing change. Her mood and appearance became suddenly dark and withdrawn. Athletics fell by the wayside. Self confidence plummeted. She became withdrawn and prone to violent outbursts that injured herself and others and caused damage to home. Our life was on the edge every day and it was clear that our daughter was tormented in some way that even had professional therapists baffled. After two years of turmoil my wife and I were resigned to institutionalizing my daughter.
> Then we found a boarding school in Maine called the Hyde School. It is not a typical high school because if focuses on character, integrity,courage, leadership and concern for others. The motto of the school is "Every individual is gifted with a unique potential" and each student is challenged in many ways to discover their own unique potential. Parents are challenged in the same way as their children to discover their own unique potential through the school's parent education program. Critical self evaluation and reflection are key components of Hyde's program, but most important are the selfless staff and teachers at Hyde. They are truly dedicated to helping each child and their parents find their unique place in world.
> To make a long story short, the Hyde School has turned my entire family's life around. After three years at Hyde my daughter has re-emerged as the smart, caring and beautiful girl that I remember and always hoped she would be. She is in the process of applying to college as a special education major, hoping to make a difference in the lives of autistic and downs syndrome children.
> And I am trading. After the meltdown last September I saw my retirement savings reduced by 50%. With many years of experience in financial markets and derivatives it was time to take matters into my own hands. I liquidated all of my mutual fund investments and started trading. Awkwardly and without much of a plan at first; but then refining, studying and having the humility to look for and ask for help. That is how I found you and OEX options Floyd, and I am truly grateful for your teachings. However, it was Hyde that gave me the courage to trust in myself, my talents and my potential to take the first steps. I am still learning and I still make mistakes. I try to reflect and lean by those mistakes. Overall, however, I am profitable. When I trade I set a certain portion of my profits aside for the Hyde school. I want to be able to help the Hyde school reach the families and children who are desperate to turn their lives around, just as Hyde has helped me and my family. So my trading is in part a recognition of my unique potential and in part a tribute to getting my daughter back.
> Thank you for asking this question. It helps to remind me why I am trading when fear and greed muddy the waters.

2.. I trade to learn to control my emotions. It is a game of zen, where I beat the bid/ ask by manipulating the other people buying and selling. I do nothing but this, and feel relaxed when I am trading, like a great big poker game.
GER

3. And from trader Johnny, who we tributed:

I got home from the hospital yesterday and my surgery has been rescheduled for this coming Monday provided the infections have been eliminated.

The tribute to our friendship brought me to tears, and I would like to call you whenever it is a good time for you.

I hope Jenn is finding that inner strength to help her move through the emotions that have been stirred in her heart and mind as a result of the breakup between her and her boyfriend. I'm confident that with your loving guidance she will find that foundation of true inner knowing that this is a test for her, and that she can and will overcome the emotional upheaval and be a stronger individual afterwards.

Thank you for being my friend!

Johnny

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The market yesterday went from a low of 9874 theoretical Dow to a high of 10,145. Read our Dow projections carefully. Call traders bought the Oct 520Call as low, easily, as 2.25 and sold to highs of 3.60 by simply following resistance and support lines. We were profitable on calls again today.

We also believe the market is now "nuts" and reaction could follow.

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It is a sad fact that the outpouring of government money has not staunched the job hemorrhaging or loosened credit to the struggling small business owner or shut off the surge in foreclosures.
The outpouring of FED dollars is what I was most afraid of, that it was not enough. I know most of the nation is now fearful of deficit, and the money being spent. I find it surprising that the deficit created by Emperor Bush is never mentioned, still part of our deficit now,as we continue failing in our overseas Iraqi effort.
We have been forced to the worst reality of our lives. We lived big, got big, and now expect not to pay for it. Or, sillier yet, we believe the "private sector" and capitalism left alone will right the system.

I refer you to Goldman Sachs record profits as the answer. What private sector? I know the small businesses that are the mainstay of America and they are NOT doing well. Credit is tightened, business is down , and they do not have jobs to give.

Last week consulting I bankrupted a firm, and a new firm bought the employees. I led this. I hired jobs, and lowered salaries of staff by 23% average for their taking a new job, and ALL 7 employees offered the jobs took them.
I lowered wages because of the low margins of the business (competitive market created by FEAR) and the inability for the new business to establish a large enough credit line, despite 38 years in business.

We blame the government for the situation, yet in actuality, it is the businesses finding they can pay less, they can use people more, and they can "make do."