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Re: FUTR GEN: Forgotten Markets



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While I'm not a Bio Neural trader I found this concept
quite similiar to how I approach these same issues. So
here's another way to look at this same thing and come to
the same conclusion. I think you will find it interesting.

Trading is a business. In order for us to stay in business
we have to provide some kind of value or the market will
simply eliminate us. For example, in a no volatility market
we can't even trade. In a highly volatile market there is
lots of room to trade.

When fear is at its peak, people who have a need to hedge
are demanding value and often willing to pay up for it.
Look at what happens to options volatility, the closest
thing we have to an insurance policy. Selling options in
this environment is like selling earthquake insurance in
California in November of 1989. (For those unfamiliar with
CA recent history, we had a major quake in Oct 89 that
shut down whole cities and broke freeways.)

When everyone is complacent that's the time to "load up" on
inventory which you can then sell later for a profit. What's
nice about trading and the instruments we have such as 
options is the relatively high degree of flexibility and
liquidity we have compared to other non-trading products.
Unlike actual insurance policies. We don't need to call up
our salesmen and put on a campaign in order to get off a 
trade.


Walt Downs wrote:
> 
> In view of the following Bio-Neural concepts:
> 
> 1. "When others forget, now is the time to trade"
> 2. "When fear is at it's peak, now is the time to trade"
> 
> I would like to submit analysis of two markets that have
> the potential for tremendous gains, and which people
> seem to be overlooking....
> Walt Downs
> CIS trading