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Cash is a position

July 29, 2008

We put picks out every week and do the best we can to make them successful ones, however this is a market that no one has seen since the 80’s as far as the volatility and constant double digit percentage moves day in and day out.  Just this week we have seen 250 points down on Monday only for it to rebound almost 300 on Tuesday.  Something to consider is taking profits early or remaining in a cash position waiting for the storm to subside a little bit.  In an options market like this, if you wait to try and squeek out an extra 50 cents on the contract you could be looking at risking your entire Premium.  We preach sound Money Management and there is no better time to observe this.  Capital preservation is the key to staying alive to trade another day.  Inside the mind of an analyst at www.hptrades.com

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Disclaimer: High Probability Trading Group is neither a registered Investment Advisor nor a Broker/Dealer. Readers are advised that all information is issued solely for informational purposes and is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All opinions, analyses and information included herein are based on sources believed to be reliable and written in good faith, but no representation or warranty of any kind, expressed or implied, is made including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we do not necessarily update such opinions, analysis or information. Owners, employees and writers may have long or short positions in the securities that are discussed. Prior to buying or selling an option, an investor must have a copy of Characteristics and Risks of Standardized Options. You can access and download the booklet on The Options /Clearing Corporations' (OCC) website at http://www.optionsclearing.com/publications/risks/riskchap1.jsp. This link reference is provided as a courtesy and does not imply that the OCC is endorsing HpTrades.com or its products. This booklet is also available for free from your broker or from any of the U.S. options exchanges. There is risk involved in investing, and stated performance results may be atypical. We do not in any way warrant or guarantee the success of any action which you take in reliance on our statements. Readers are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report and website should be independently verified.