Putting the Plural in SelfInvestors – Options Trading Lessons Begin

Posted By Tate Dwinnell |  Subscribe in a reader | Comment 4

It has long been my desire to bring to my readers another perspective on the market as well as insight into other tools and strategies.  When I first set out to build SelfInvestors.com over 4 years ago my first choice of domain name was SelfInvestor.com but that was taken so I was left with SelfInvestors.com.  As it turns out it was the far better choice.  I am but one Self Investor.  There are many Self Investors who are trading their own accounts and making a living, allowing them to work whenever and wherever they choose.  There are others who are funding their retirement or funding the education of their children.  Trading stocks for a living is in my opinion the best job in the world and I know that those who trade for a living feel as I do.  From here on out it is my goal to bring you perspectives of other successful Self Investors and I begin today (my fault for getting this posted so late) with Barry Brush (aka 2Dimes).  I’m very pleased to have him contributing and know you will be  too.

2Dimes Investor Notes

Good morning and TGIF!  It’s 7 a.m. EDT here in Charlotte, North Carolina.  My daughter is off to high school, the cat’s fed and the dogs are sleeping.  My wife will be back in a few moments from carpool to stir things up.  It’s the last day of the options trading cycle for October and I’m excited about today’s outcome.

This is my first post for SelfInvestors.com. Your friend, Tate Dwinnell, kindly opened his door and invited me to periodically share my insights on trading as I go about making a living in the market.  My name is Barry Brush, I’m an options trader. Call me “2Dimes.”

Before I go farther, I’d just like to say one thing about options: *Please read Characteristics and Risks of Standardized Options before investing in options. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial Gains.

I think Tate has done an excellent job putting together and managing the SelfInvestors.com site for all of us.  It is a valuable asset for any trader’s toolbox.  It has a clear crisp user interface and is full of meat and potatoes.  The equities he tracks and analyzes are mainstream and pertinent in all respects.  A ‘10’ all the way.

A little about me personally: I’m a graduate of the Vietnam era USAF. After my stint in an O-2A, (a la “Bat-24”), I joined Merrill Lynch, Pierce, Fenner and Smith as an Account Executive. That was during 1974 and 1975 when the CBOE (Chicago Board of Options Exchange) had just opened.  I knew a little about options then; but my love for flying led me back to a 32 year career as a commercial airline pilot.

I was compelled to retire medically at the age of 57, a year after 9/11. It was a two time bankrupt and bought out airline that is still in business today with a whole new Board of Directors and covey of new shareholders.

At a motivational seminar one day, a guy got up and told me how easy it was to make money in the stock market following little red and green arrows.  I said “Wow! That looks easy!”, and I was in.

That was 4 years ago. Now after a lot of trial and error, study, emotion and commissions, I make my living Trading options. I don’t have a million dollars in my trading account but working up from 10 grand to about 400K over 3years has given me the confidence to feel that I may be doing something right. The major thrust of my blog will be to help others do the same.

So here’s a preview what you will have to look forward to from me. Over the next weeks and months, we will focus on how to be successful in Options Trading. I will shed some light on topics such as: Trading Strategies, Basic Options Education, Risk, Money and Emotional Management. I plan to compare different tools, charts, programs, ect. I’ll give you my thoughts on various brokerages, Market Gurus and useful literature. My intent will be to distill for you some of the often overwhelming and voluminous amount of information out there so you can simplify your job of trading successfully.

By now you have probably asked yourself what’s the “2dimes?” Well that’s just it. What is it? 2dimes is a pair of dimes, an anagram that should bring to mind: the word PARADIGM. It’s what you look at; but can not see. What you know but do not understand. That which you don’t know because you don’t know you don’t know it. Check out the guys on the logo again. Neither one of them can see what the other sees; but they both see something. One is profit, one is loss. Which do you want to see?

I have 3 daughters from age 34 to 14 and a 24 year old son. Given the nature of the wealth creation vehicle I have built, it is imperative that I teach one or all of them how to carry on when I return to flight. So, to keep it simple I’ll always try to explain things as if you were one of them.

Let’s start with one of my favorite topics. I call it “The First Law of The Market.” Stated simply, it follows that the only constant in the Market is CHANGE; and it is Price and Volume Action that rules that change.

You already know that you want to buy or sell in the direction of a trend. So, when do you start riding that horse? And when do you dismount? The Law of the Market tells you with out any fancy signals or processor frying algorithms. 2Dime’s First Law of the Market states: “Never Ever Buy or Sell until the Volume confirms your action.” Say it three times to yourself now and once before you go to bed. STLD provided a good example on Wednesday and Yesterday. (See Below)

 


That’s all for now, I’ll leave you with a thought for the day: “Knowledge hides behind its own language”.

Cheers, 2Dimes / Barry Brush (To contact me send an email. To support@selfinvestors.com and Tate will make sure I get it.)

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Comments on Putting the Plural in SelfInvestors – Options Trading Lessons Begin »

October 19, 2007

ken @ 11:42 pm

Thanks a lot for sharing your experience and knowledge. I’ve always been interested in learning about options strategies, but there are too many b.s. blogs and books out there, most of them boast outrageous returns and are full of marketing scams.

It’s nice to learn from someone who’s been actually trading options successfully, and is willing to share his knowledge freely and candidly. Thank you for your kind gesture and generosity.

Regards,
Ken

October 22, 2007

Tate Dwinnell @ 6:36 pm

I’m very much looking forward to Barry’s posts as well Ken and hope to bring my readers more insights from other self investors who are out there investing successfully!

[…] 1. Putting the Plural in SelfInvestors – Options Trading Lessons Begin […]

[…] Below, new SelfInvestors.com contributor Barry shares some more thoughts on trading options.  For more about Barry, please see his first introductory post.  Thank again Barry, another great post! […]

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