After having spoken at many conventions and seminars, I would say the most common general question that I am asked is “Should I be a speculator or should I trade hedged positions?” There is no pat answer to that question, for part of the answer depends on the individual’s penchant for what he feels comfortable doing. That aside, it might be enlightening to look at the track records of The Option Strategist hedged portfolio and speculative portfolio as a means of determining at least some of the factors that one would use in making the determination as to whether to be a hedger or a speculator.
At the end of most of my seminars, I give a few general tips or principles that one should use. One of those is, “Only trade in accordance with your personal philosophy.” By that, I mean that you shouldn’t indulge in styles of trading that cause you to worry, gnash your teeth, or lose sleep.
