Trading Options – Responding to Feedback

I recently sent my updated blog out to friends and family for feedback – and boy, did I receive feedback.  I have made many of the recommended changes – ignored some of the more snarky bits, but one point of criticism that was echoed by many, and requires a further explanation from me – namely, why am I not pulling the trigger on more options trades.

Ironically, the whole reason I started this blog was because I was not finding many opportunities in the Market, given the huge run up over 2013, 2014 and early 2015.  I was bored – but now many of my posts are probably boring you.  When I started this blog, the 10 Year P/E ratio was over 27 – it has only been that high 3 other times, 1930, 2000, and 2007, after which at least a 50% market decline followed.

Over the years, I have probably made every investment mistake known to man; I may have even invented some new ones along the way.  With that said, at this point in my life – I am at total peace with who I am, how much money I have saved, and how I have it invested.  Because I have achieved this enlightenment thru said misadventures – I was hoping to document the process I use for my portfolio in an attempt to save others from my past mistakes. Because of these mistakes – I do not trade Momentum stocks, Commodities, Forex or Short stocks.  Other Traders can and do make money from these type of investments – but I don’t have the stomach for them, so I keep with a very Traditional, Value Investment process.

• “If you don’t know who you are, this is an expensive place to find out”. – Edward Johnson on the Market

I cannot sacrifice returns by relaxing my target price and discount requirements just to be invested all the time – this is really my money being invested – and I am using this blog to help me stick with my process – which sometimes involves doing nothing.

• “One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do… I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up… I wait for a situation that is like the proverbial shooting fish in a barrel.” -Jim Rogers in Market Wizards

With that said – I do have two stocks on my “ready to pull the trigger” list (P&G and Merck).  Hopefully we get a little fear in the Market next week, and can put some money to work.

Thanks for all the feedback!