Nov

15

Trading lessons

November 15, 2021 |

thanks for the comment about being one of best traders of all time. many people including my wife and black swan acolytes think i am one of the worst. the idea is fanned by the new yorker article calling me the blow up artist. upon reflection, i couldn't defend myself during the new yorker article because i couldn't give my position away. as to why i lost so much from selling out-of-the-money puts, i now conclude that because of the small number of market makers who had positions against me, and who made the rules and margins, that left me vulnerable to "concerted" action from those with opposite positions to me. i did not have the wherewithal to withstand the moves that were dissipated as soon as margin forced me out, and prices started rising again. i should be tarred because i put myself into this position where i could be broken so easily by my adversaries. other than my forays into selling puts, i have done fine mainly because i have always been bullish following lorie and dimson and now p.

gave all the gross proceeds to my customers. one other thing i learned from the debacle was never to bring a legal action as the cost of pursuing it is always greater than the expected recovery. i wish i had followed this in my merger business where i stupidly insisted on full payment of my fees and brought action to recover the last 10% or so that my customers wished to chisel me on. as I am 80 yrs old, i am tired of being tarred and feathered for my lapses in 60 years of trading. thank goodness, i was able to recoup for my 7 kids and 13 grand children and they are free to pursue whatever career and education they wish because of the good trading i made to offset my lapses in selling otm puts. btw i've learned my lesson, and haven't sold any puts for 15 years and don't advise others to do so even though with point and click trading there are more than 2 market makers on other side these days.

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