Tuesday, June 27, 2006

When a Bad Day is a Good Day

The market seemed to have a pretty rough day today. I was smiling all day about that. I hope tomorrow is even worse. Am I short a lot of stocks? Nope. Do I have lots of puts? Nope. Am I a sadist? For the last time, nope.
Here's why a down market gets my spirits up:
A lot of good stocks took a hit along with the bad ones. So when I buy tomorrow, or the next day, or whenever the market is about to start coming back, I'll be buying at a reduced rate. This strategy is particularly profitable with options, because it's likely the good stocks will come back from today's losses pretty quickly.

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