Gold Rush

I recently wrote about how Cash was Today’s Hottest Investment. I made this assumption based off the billions of dollars investors are adding to cash accounts (checking, saving, and money market) and removing from equity funds. This is a great way to track investor behavior. Although cash seems to be where investors are moving money, I hear the most questions about Gold.

Winter: The Season Before Spring

Winter. The word alone brings images of kids playing in snow (unless you’re from Texas), Santa Claus, and a plethora of religious holidays such as Christmas, Hanukah, and Kwanzaa. However, to Snider Method investors, the word “winter” causes people to cringe and have premonitions of the Apocalypse. Winter is a term used in the Snider Method to describe a position that is not able to generate any option premium. Winter positions are never fun and I get many calls from clients asking how to get their positions out of winter, if there is some way to strategize their way out, or simply sell the position and move on. However, the question you should be asking isn’t “How do I escape winter?” but rather “What are the alternatives and is it better than waiting?” There are three main alternatives: selling the position and starting over, buying more stock to reduce the cost basis, and Transmogrification.

Fear, Hope, and Greed: The investors best friend or…

Have you lost sleep over your investments lately? If so you are not alone.

With all the complexities and nondescript jargon surrounding the financial markets nowadays it is easy to forget that they are still driven by the same thing they always have been; buyers and sellers.

Stock Market Slot Machine

I strongly recommend an excellent article to you, from the Psy-Fi blog, a regular on my daily reading list. The title of the article is B.F Skinner’s Stockmarket Slot Machines: Win Big, Win Rarely, Win Never. I often refer to B.F Skinner, intermittent variable reinforcement, and how the stock market creates superstitions much like those created in Skinner’s birds. This …