Quote:
Originally Posted by ToothSayer
You manage to be wrong in most things you say, which is quite a feat*, but sometimes, you outdo even your own idiocy and contradict yourself.
If you can fade the initial reaction then you can also play the initial reaction if you get in fast enough - and it's a lot more profitable because vol hasn't spiked yet. The Trump fake news about Flynn was a perfect example - it was a 15 bagger if you bought puts on the news with 5 minutes and a 70 bagger if you bought it within 2 minutes.
*And hilarious since you're going for a kind of grandpa wisdom vibe, despite never having traded anything other than selling a bit of vol
So, I know this guy who trades almost purely on news and events, and I am 1) sure that he reads pretty well and 2) I am almost positive that he didn't put 1% of his bankroll into this 70 bagger or he'd be jumping for joy with his bankroll up 70% for the day. Maybe he secretly hates money.
Or were those numbers just for illustrative purposes of what you can do on a trade if you have magical abilities to enter and exit trades exactly the right instant? If so, do you know how much you'd be up if you were long SPX on all the up days and short on all the down days? I mean, you
could just be long on all the up days and short on all the down days.