FINANCIAL QUESTIONS 101 Rhino? SIERRAHPBT?
I have a couple questions....and they are really important to me. The time has come for this financial downfall to roll the dice...but cautiously in my opinion. I understand that some of the Daily Paul people will bash me with the Doom and Gloom riot, depression scenario, but I am prepared for the worst. I have my Gold and Silver, I have a monster food storage and I even have a safe room in my house, so the only way you could find me would be with a thermal imaging device.
So lets set aside the Doomsday stuff....and start looking at making some money.
There is going to be a point where it is time to "GET IN". And when I say get in, I mean to the stock market on the beaten down financials (which I understand will not be soon), or maybe trading the SLV and GLD etf's. This is going to get very interesting in the future.
Now don't get me wrong. This economy in my opinion is doomed, but I can not sit on all cash. I have to try and make it work for me. Many millionaires were created in the depression, and their is a huge opportunity in front of us if spotted.
So my questions are this....
Is their anybody here on Daily Paul that thoroughly understands options trading, and options buying?
I looked on the net, and have just been led down so many paths...I need some real answers.
Like right now......I would be buying options that would be betting that oil is going down. I don't know how to do it, and I don't know what the best resource is to eliminate my learning curve as much as possible.
How do I find out the prices of options, and spreads?
How do I put stop losses, to cut my losses if I am wrong?
Next I would like to buy Gold options at $1200 an ounce about 6 months out? How do I do that?
Better yet...can anyone point me to someplace, or some book that they have read that gives you the low down on options?
Next question.......
Is anybody buying stocks??
What are the current plays...and are you shorting? Or Buying??
Give me your thoughts.
Thanks.....
The Internet is a BEAST on these subjects...and I do not want to start buying the wrong books.
Just buy some ETF's that specialize in doing what you want to do
Free and Brave
or Cradle to Grave
You can't have both
Free and Brave
or Cradle to Grave
You can't have both
Just out of curiosity, takeaction, why not start a business that
makes money out of this downturn?
___________
Lisa C.
www.dvds4delegates.com=Ron Paul, the 44th U.S. President
“Elections are short term efforts; revolutions are long term projects.”
--Ron Paul
Join the rEVOLution here: www.campaignforliberty.com
Ron Paul "Sign Wave Across the USA" -- November 5th!
Well
I have made lots of money.....I have money to invest. I have lots of money in silver and gold.....but you are right.....the best thing I can think of is opening a bar! LOL.
I am way past the money making stage.........I am just trying to figure out how to hold onto my wealth....or double it. The problem is, I do not want to make a mistake.
Stock Market NO
Real Estate NO (In USA)
Here is my situation.......
35% Cash
30% Property (Foreign Countries)
35% Metals
So for fun...lets say this is based on $1,000,000 dollars???
I am going to stay tight on the foreign property, and I am going to stay tight on Metals. I have the other 35% cash.....????
Hold it in Federal Reserve Notes....or play it some other way?
take, you may want to look
take,
you may want to look at a swiss annuity... I would not keep US cash..
or even swiss government bonds!
as for me and my home, we shall worship the LORD
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
I understand, takeaction.
I remember years ago a wealthy man told me that his biggest headache was dealing with his cash. I just scratched my head at the time and wished he was my daddy. Now, however, I completely understand and I'm much like you.
Are you in the US or overseas?
As far as real estate goes in the US, my picks would be: acreage (farmland), boarding houses and mobile home parks. I'm always up for cashflow and there are millions of middle-class Americans who will still have some form of income but have to seriously downsize and become tenants in one form or another.
Interesting dilemma.
___________
Lisa C.
www.dvds4delegates.com=Ron Paul, the 44th U.S. President
“Elections are short term efforts; revolutions are long term projects.”
--Ron Paul
Join the rEVOLution here: www.campaignforliberty.com
Ron Paul "Sign Wave Across the USA" -- November 5th!
I am
in Costa Rica on the property side.... I see a bottom on the housing market coming within the next 24 months or so....their will be a bottom...and their will be a time to get in......I am calculating a 40% drop in housing prices over the next 24 months..... I am out making offers on houses that are up for sale. Right next door to me are 2 bank owned foreclosures. They are on the market for $220,000. I offered them $120,000. Of course they told me to "Go Fly A Kite".....but I am all about making this work. Here in Portland, Oregon, an average house rents for $1300 a month,. I am a bottom feeder...so if I can get a nice house that is bank owned for $120,000, I am all in. The mortgage will cost me about $850 per month...and then rent it for $1300 a month...the game is on. The SH*T that is hitting the fan right now is advantages to people like me that have a credit score of 810, and have no debt. Sure I am pissing off a lot of banks and Realtors , but who cares. This is all about money, and who can do it. Just like in the depression of 1929...many millionaires were made...well....bring it on. I made over 7 offers this week....we will see if one of them says YES! If hey all say "NO"...that is okay.....I will wait till next week and do the same thing.
Capital
If you have that much working capital why would you take out mortgages? What if you can't rent those houses that you have mortgages on if the economy really implodes? Then you would be fucked with mortgage(s) payments. Buying the property(s) in cash makes much more sense. But what happens if you still cannot find renters? Well then you only need to pay for property taxes and limited up keep. I agree during a bull economy to at least take out mortgages and make somebody else pay them off. The nations 3rd largest bank went bankrupt. Freddie and Fannie might go bankrupt. Freddie and Fannie hold or guarantee 50 percent of all mortgages in America. The FDIC is now down to only 75 percent of its liquid capital. The FDIC only had 53 billion dollars to cover losses of FDIC insured bankruptcies. Obviously the FDIC does not have enough capital to cover every bank failure or in my opinion even a ballpark amount. A person of wealth would be smart to buy a farm or stockpile tons of food, pay off there property completely, and diversify. You have diversified really well though. My plan is to be completely debt free, try to pay off my property, stockpile food and water, use my 2nd amendment rights to bare arms, diversify with gold, silver, foreign currencies, investments, etc and last but not least pray to god that this country doesn't implode like some of the financial indicators are pointing to.
Web Developer
www.writetoredress.com
Take Back Your Country!
www.RealityUnKnown.com
I think you have a very good point. In a major DEFLATIONARY
"Only a virtuous people are capable of freedom. As nations become corrupt and vicious, they have more need of masters." Benjamin Franklin
---
depression, it is possible that your money can suddenly disappear due to bank failures, etc. So, for example, let's say this person finds three very nice houses for $120K each and borrows 80% or $288K and buys them. He think he's fine because he has $350K, but potentially, he could lose the $350K and be stuck with the $288K debt.
In a DEFLATIONARY depression, I would be extremely careful to borrow money. Of course, in my opinion, most people have been brainwashed to believe Hyper-Inflation, so I'm afraid that a rude awakening awaits these people, in my opinion.
government of the people, by the people, for the people
---
A multi-millionaire once told me that if you're not embarrassed
by your offer, it's not low enough.
We've been out looking at homes here in Oz. It's definitely a buyers market. We've seen some beautiful homes go unsold that would have been snapped up in one day a year or two ago.
___________
Lisa C.
www.dvds4delegates.com=Ron Paul, the 44th U.S. President
“Elections are short term efforts; revolutions are long term projects.”
--Ron Paul
Join the rEVOLution here: www.campaignforliberty.com
Ron Paul "Sign Wave Across the USA" -- November 5th!
Yes
I agree 100%. It is a buyers market...and you can name your price. It is just a matter of time before somebody says yes. This is what I am doing. I don't care how many Realtor s say "NO" to my offers.
I bought the house I am living in this way. They wanted close to $220,000 for it and I offered them $120,000 cash. I pissed them off. 1 month later they called me back and asked if that offer was still valid...and I said yes.......now the house is worth $370,000.(even though prices are down)......so it worked out good. I will keep low balling everyone on houses this way till I get a yes. When you don't care...it is fun.
I love watching the realtor's face.
He's disgusted by your offer only to come back at some point with hat in hand.
___________
Lisa C.
www.dvds4delegates.com=Ron Paul, the 44th U.S. President
“Elections are short term efforts; revolutions are long term projects.”
--Ron Paul
Join the rEVOLution here: www.campaignforliberty.com
Ron Paul "Sign Wave Across the USA" -- November 5th!
Yep
Cause all they care about is their commission. They don't care about the seller. So this is what I am playing on now. Again.....their is a point where you can not go wrong in a real eastate deal. If the property will rent for more than the mortgage...I am in! Simple math!
I wish I could be with you in Australia....
LOL
I am not a professional so I will not add my two cents ...
on how to.
I will give you my macro perspective and will give you some sectors to look at and may throw a few equities out there.
Do your research. Be patient and never panic.
WAHOR!!
http://www.dailypaul.com/node/48994
WAHOR!!
http://www.dailypaul.com/node/48994
Options
I have an options trading firm. I have traded options for over 10 years on the floors of the CBOT, CBOE, CME, and my firm has traders at the AMEX in New York.
Options are a rather complex product to trade. It is far easier to speculate with option though. The reason for this is because you are far more leveraged than when you speculate with the actual product the options are based on. If you are sure a product, like gold, is going to go to 1200 say by Jan of 09 then you can buy the Jan 1150 call in the gold futures options. Its as easy as that.
Just because something can be done doesnt mean it should be done though. You need to be sure that a highly leveraged bet is what you really want to do. Your downside is that you lose ALL your money.
When an option expires it is worth $0.00. So if the market only goes up to 1140 per oz by then you lose 100% of your money.
My advice is to take a very small amount of money that you are willing to lose all of, and buy a few long term upside calls in the gold or silver markets and buy a few long term puts (to short the market) in the SPX index. Also remember that 1 option represents the right to buy the underlying product, so you need to have liquid funds available to buy the actual product or you need to sell the option out.
My over all recommendation is to buy the stuff you want and hold it. Buy the actual gold or silver, but if you really want to place a bet options are the way to do it.
Symbols
Silver fut SI type into yahoo then click options chain
Gold fut ZG
SPX fut ES
Let me know if you have probs finding these symbols
I can help you takeaction...
I have been a commodity futures and options broker for over 15 years. My wife, son and I operate a small firm with a book of clients totalling $40 million, and we can clear trades in most exchanges worldwide through several clearing firms ... (not bragging, just establishing credibility ;o)
Using futures and options to hedge against price swings or to invest in a commodity is a GREAT way to go. There are several things you should know if you are new to this game, and we can talk about it privately. There is so much to discuss, read and learn before taking action.
You can start by going to our website and becoming familiar with it: www.cbifutures.com You can get free delayed quotes there too. Or simply email me and I'll ring you and I'll do my best at answering your questions and sharing some of my dos & don'ts wisdom.
If it is to be, it is up to WE!!
Takeaction...I am an options trader....
and I do it full time...staring at 10 monitors in my nicely appointed basement office! I own my own collection agency but no longer take part in it's daily operations having grown weary of being a prick for a living.
I was trained in trading by a VERY successful mentor and therefore I would highly recommend that you do not do this without a great deal of preparation and instruction. I practiced "virtually" for two years before I ever even tip-toed into the market with $2,500.00. That entry amount, after a period of extreme volatility, has grown incredibly (unbelievably) over the last three years and has shown all of my disciplined work to be well worth the effort.
You have to know how to make money on paper before you even begin to deal with the issues of "fear and greed" that we all have to learn to control when dealing in "real money" (however much a misnomer that is). This has been a process, a ton of work, and a lesson in self-discipline, but I now can make money as easily as I breathe.
As to how to find that instruction and the will within you...contact me privately.
**“The man who does not read good books has no advantage over the man who cannot read them.” ~ Mark Twain **
"...there is no doubt that it (socialism) could not possibly have affected us so widely and so deeply as it has, had it not been heavily financed". - B. Carroll Reece
WOW
Thank you so much....I was ready to start playing with $100K
Thank you
Don't Do It
I'm a full time commodity trader who trades options and futures. My advice to anyone is DON'T attempt to speculate in the markets. You have worked hard for the cash you are holding onto, and in a deflationary environment it WILL be working for you as prices come down. Instead of trading, read Prechter's "Conquer the Crash" for advice on how to safeguard your wealth. Market speculation is RISKY and unless you are willing to lose ALL of your money, perhaps several times, over a period of years before becoming "successful" (or not), then stay away from speculating altogether. (Especially if you have a family to support).
Again
Thank you for this advice. I lost about $65,000 in the Dot.Com BS....and have recovered well. But I am trying to figure out what to do with $300K to maximize profits besides PM's!
What should I do?
Long term, low interest debt, now...
And if you want to invest, read Security Analysis by Benjamin Graham. It's long, but if you don't read it, you are going to get hurt no matter how/when you invest. This "technical" trading that has swamped the markets is nothing more than gambling on emotion.
Bet on good companies, based on their balance sheets and value, and you will pick up some great bargains right now and for the next few years. And when/if things turn around, you will be rich because the emotions of the "techies" will drive the markets sky high... And if things don't recover, well, it won't really matter will it... :)
And understand every aspect of the markets you are getting into. It's not enough to understand the company who's stock you are buying, you must understand how that type of stock interrelates with the market and what it will mean to you as an investor.
The Philosophy Of Liberty -
http://www.jonathangullible.com/mmedia/PoL.English.The.Philo...
If you don't mind,
could I ask a question too?
Do you think interest rates will go up or down in the near future.
We are refinancing our house this week.Thanks for any information anyone has on this.
Get ready
for 10, 12. 14, 17% interest rates. It is coming!! And as I said in a post below....I will pay off my house with 500 ounces of silver!! Woohoo!
yep I think so too! as for
yep I think so too!
as for me and my home, we shall worship the LORD
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
I would lock them in asap..
I would lock them in asap.. as capital flees the interest rates will have to go up.. that has nothing to do with the fed! as people start to see all these banking runs and banks being shut down the banks will have to offer higher interest for the risk and for people to keep there money in the banks! the rates will have to go up.. then this will kill the economy even more.. as Jim Sinclair said its an economic downword spiral!
as for me and my home, we shall worship the LORD
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
WOOHOOO
Lock in your rate now!!! I just did. Interest rates are going to SKYROCKET. With inflation running over 10%, rates are going to go through the roof. You will not see 6.5% for years (10 years).
Lock it and do it. You will win on this deal!
Then buy some silver. Buy 500 ounces of American Eagles. It will cost you $10,000 roughly right now. Then in a few years you can take that box of silver and pay off your house!
Don't take it from me......watch all of these
http://www.youtube.com/watch?v=8CQ5gJNxsdk&feature=related
Why American Eagles?
Are big bars of silver ok to buy?
NO NO NO
Bars are the worst to buy. These are the first to be confiscated.
For Example....
When I travel overseas, I take 20 American Gold Eagles with me. THese eagles have a face value of $1000 (US) but have a precious Metal Value of $20,000. Their is a grey area in the US customs thing that they only require you to claim any "Monetary Instrument" over $10,000. So if you buy Silver Eagles, or Gold Eagles, by law, you only have to claim them at face value. So in transportation.....you could have 9,999 silver eagles on the plane and still claim that you have less than $10,000. Now......be careful....if you have an extra $100 cash in your wallet, then you have committed a crime as our government sees it. So be very careful. If you have 9,000 silver eagles.....it is only $9,000 dollars as the law reads. But on an international scale it is worth $180,000. Do you see the game here?? Same is true with $50 gold American 1 ounce eagles. It is valued at $50, but the real world value is worth $920 each today. Somebody has set this game in play on purpose...and I will play it to its full extent!
wolf,,,, having silver
wolf,,,, having silver period is great in any form!
I like pre 64 90% silver dimes because I can buy a loaf of bread with out having to figure out how to get change! silver eagles are great too! you just have to figure out what you think you will need to buy.. if you have a hundred ounce bar, how will you get change when trying to buy a pair of levies? or groceries? or going down to the local farmers market to buy corn, fruit etc?!
as for me and my home, we shall worship the LORD
“A prudent man foreseeth the evil, and hideth himself: but the simple pass on, and are punished.” (Prov. 22:3; 27:12 KJV)
Hey McCain-----┌П┐(◣_◢)┌П┐
I have several sets of sterling
silverware that I bought when I was an antique dealer.Also lots of antique jewelry.I figure trade a
spoon or ring for bread.Save the big bars to pay off the house!
Thanks for the info.
I thought rates were bound to go up but didn't know if they would go any lower first.We need to get out of the bad loan we have and get a 30 year fixed.
Already bought 200 ounces of silver and a ton of food.