Stock option trading – From the earliest research in formula investing, authorities on the subject have emphasized that "the idea of a ready-made plan, which investors are supposed to follow exactly, is not the proper approach to the problem.

" 8 Every investor has different tastes, needs, prejudices and objectives, and therefore should have a formula which is adapted to them. Lucile Tomlinson, who probably knows more about formulas than anyone else, in referring to her experience in helping investors to draw up formulas, states, "As far as I can recall, no two completed plans have been exactly the same in all details." 9 No one who has studied the subject of formulas would pretend that any is perfect. The very theory of a formula, in fact, includes the assumption that it will always be somewhat wrong, but that it will also always be somewhat right, and that it will be more right than wrong over a period of time. In a story in early 1959 on a decision by the State of New Mexico to invest 25 percent of its $159 million Permanent Fund in common stocks (as against a previous practice of holding the entire fund in high grade bonds), it was reported that the $59 million bundle would be sunk into equities under a "slow, four-and-a-half year program," calling for stock purchases of about $1.1 million a month.

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