Champions Manage Their "Losers"

If you follow the Wall Street pundits, you know that every authoritative pundit will say that the trick is to "Manage Your Winners." Any person who has actually traded or invested knows that this is bull. Any two year old can take gains...that is the easy part...What is left after the gains have been gotten, is the losing positions...And the solution to those losing positions is the difference that makes one a champion... Directly facing the losing position, and taking additional options positions or stock positions to mitigate the potential loss is what distinguishes rookies from successful investors. The worst of all worlds is to DENY or COVERUP the losing position...Ah the memories of the famous "London Whale" saga....Those who cover up or deny when working for a trading firm end up in shame or jail or both. Champions manage their losers.

A bit on "Hedging" and "Trading":

Most all products produced for international destination points are hedged for price and or currency risk....Hedging is done as a Insurance risk matter, and a routine matter, and can be found in many sourcing chains of command.... For example, the notional value of one (1) contract of coffee is about $60,000 and a futures call placed daily would over a month would create futures hedging of the amount shipped of 1.200,000....When a 90 day period ends and the futures are rolled to the next period, the value could reach 3,600,000 as far as notional value...the purpose of the future premium is to hedge the risk of coffee price rising, and this is hedged since if coffee price rises, the future rises with it.. Coffee futures trading is the most volatile of all futures....The risk of trading these actively and intraday is enormous, and the risk is bourne by the firm's capital...traders earn 200K plus percents of profit....They are trained and may have extensive registrations as brokers etc ...In short---trading is not hedging...Different risks...different temperament....

So you want your own capital back and pay taxes on it?

It has been pretty sad over the past 5 years or so as high dividend stocks have preyed on the desire of senior citizens to get a fair return on their hard earned savings...it used to be that a bond book, and a cd card...ya kind of like a holy card, were kept at the bedside of seniors nationwide....Every since the crash, and the easing of the money supply, and the 1% yield found at banks....seniors have been scrambling to find decent yields...and if they went to attractive stocks, they might find stocks that had yields as high as even 12%....but if seniors and investors had looked closely they would have noted that in the statistics of the company profile, the earnings of the company could not cover the dividends disbursed, and eventually when the company cut the dividend, the stock plunged....but no worry, the investor still had to pay taxes on the dividends paid....so all in all...a lose-lose deal...A word to the wise...if it looks too good to be true...it probably is...and as a p.s.....never purchase any investment with the word "trust" in it...as in "royalty trust."