Speculative Trader vs. Investor

Speculative Trader to Long Term Investor

Hello speculative traders or investors! Wanted to start by thanking those of you that have visited my site. I have enjoyed and will continue to enjoy creating videos and writing posts for everyone interested. If I can ever help don’t hesitate to reach me at the email located in the footer or by commenting on one of my posts. I receive either directly.

So, lets get on with it…

I’m writing tonight to begrudgingly admit that my short term trading has taken a back seat to longer term investments. More accurately, I’ve started using my shorter term options trades as intended. As hedges, to my investments.

I use the term begrudgingly because I’ve always viewed myself as more of a trader than an investor. I enjoy the speculative nature of trading within the options market alone, but given a market environment that just won’t quit I’ve had to accept that owning underlying’s are simply more profitable. As I write, my stock holdings are performing incredibly well and my dividend portfolio just keeps pumping out cash. Between the two I just can’t justify the risks of speculative options plays at this moment.

Now, don’t misunderstand me. I’m an options trader and always will be but this market has proved that options truly are perfect hedging vehicles. In the past few months I’ve made very few stand alone options trades. The trades I’ve replaced them with were simple puts, calls, or spreads as hedges to my stock portfolio.

In fact, I just posted a video documenting how I’ve successfully used iron condors to hedge a long stock postion. Take a look here to let me know what you think.

The results have been eye-opening to say the least and given that 98% of the material found on this site is designed for options trading as an investment vehicle in and of itself, I felt it prudent to share my new thought process with those that may read this post.

I found this article to be a interest as well. It more clearly expresses the difference between trading and investing, have a look if you’re interested.

In the weeks or years ahead I look forward to redefining myself as a both a trader and a long term investor. Additionally, I look forward to sharing it all here for valued Optionboxer visitors.

May God bless and keep your trading profitable,

Jeff

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