Updates, Thursday, 02/03/2005 10:44:22 PM ET
Mike: If I want to start investing with couch potato when is a good time to begin? Beginning of a month? Thanks, I enjoy your column. -- Carl
by Mike Parnos
HAVING TROUBLE PRINTING?
I'm glad you enjoy the column. I hope you're both learning and profiting from it.
For most of our strategies, you can begin at, or a week or two prior to, the beginning of an option cycle. It depends on the strategy you're going to employ and the amount of premium that may be available on the index you're considering.
Just make sure you have a comprehensive knowledge of the strategy that you're going to use. Not only do you need to know when to get in, but also when you're going to get out or at what point you're going to make an adjustment -- and which adjustment you're going to make. Trading is not supposed to be exciting. It's supposed to be boring. Once you have all your moves planned (before you even enter the trade), it's just a matter of pressing the buttons -- without emotion. It may be dull, but profitable.
Good luck and be careful!