All I can say is, wow! I had no idea such a small amount had the possibility to creat such an extremely high return. If you only have to put such a small amount in, and if you are prepared to lose it all, it sounds like an amazing reward potential. It sure can beat ZSL by far with only a small investment, although the timing and other factors sure make it seem tricky.
I greatly appreciate the explanation. I kept hearing about puts/calls but did not have any idea of how they work, especially how lucrative they can be! I've never heard of anything like this, even remotely. I guess I first need to learn how to read the charts and then after lots of research only risk a very small amount of money. I think I'm a long way from this point. The one thing that makes it less scary is that you don't have to risk much money.
I had no idea that trading/investing would have such a powerful affect on me psychologically. It has greatly tested my mental, emotional and psychological abilities. It is at times exhilirating and at others devastating. It has made me question the value of money and my priorities in life. I have never been a materially driven person, but this trading unleashes a whole other side to me. This has by far been one of the strangest and most interesting experiences in many years. Having used all of my limited funds to buy ZSL on an impulse at over $23.50/share and then getting clobbered as it changed directions has been grueling since I have been watching it every day for weeks waiting for it to bottom. It feels like running a marathon while on a bad acid trip!
But, thanks to you guys I am learning. I don't know how many times I thought about Trades' remarks about capital preservation, stop-losses (which I need to learn how to use), the current high-risk environment, and all of his other sound suggestions/warnings.
I am learning from my mistakes, and because of you guys getting better at understanding charts. I still don't know how you can do this on a daily basis or as a profession. You guys are a lot tougher than me. I don't think I could survive the stress for very long. It would definitely shorten my life unles I somehow learned to deal with the stress more effectively.
Anyway, it's late and I've rambled enough... Thank you for your time and willingness in repeatedly helping me out. This is a wonderful forum! You guys are great.
Enjoy the weekend,