Our recent Warren Buffett article caused one man to lose it (and not understand). He is a great example of a follower and ultimately a market loser:
Why not get some men back into your organization? Today's comments on Buffett are typical. Farmer: Gee whiskers and willikers, the sun certainly is good for crops, you may want to look into it. Little girls at TurtleTrader: Oh, so HOW much sun should we use? What TIME of day should we use it? Get a f**king life, girls. Or do your own research. You want WB to tell you everything? What a bunch of a**holes. And, why would you even want to ask ANYone else how much you should buy, how long you should hold it, and when you should sell? What a crying bunch of investment newbies you girls are. Start thinking for yourself for a change.
Here is the article that caused his ramblings. The writer above misses the point. Buffett is acting no different than any other stock tipster.
Positive Feedback
I thought I would take the opportunity to say thanks for the course, the support and the site. Everything I have read (and continue reading), makes absolute sense to me. I am a dentist, who decided a few years back that there is more to life than dentistry. I started reading and studying about investment and speculation until I became completely absorbed by the whole field, to the extent that I hardly think about anything else. I was looking for a methodology of trading when I stumbled upon...the site. The moment I started reading, I knew that I had found my method. I have gone through the course...and I hope to start paper trading within the next couple of weeks. Thanks very much again.
Retirement Plan Wake Up Call
I am currently an employee with the State of California and have the ability to start setting aside trading capital in a 457 plan with Charles Schwab at the rate of $1000 per month. My concern is that although the tax benefit is huge, I will not be able to do any short selling or trade anything that is not on a cash up front basis. For options trading I am restricted to writing covered calls and buying puts against long positions. Since the putting $1000 a month into a self directed retirement plan cuts my taxable income almost in half, it seems pretty great, but if the restrictions force me into a long-term buy and hold investment strategy...My basic question is this: Can I effectively trend follow with these restrictions and if so, how much will I be hampered by not being able to short sell on a margin account. Would I be better off just paying the taxes and putting the money into a margin account with a discount broker?
A tax benefit that severely restricts the way one can trade or make money is no benefit. This gentleman is right. The government, with their great benefit, is forcing a buy and hold strategy. He would be better off without this retirement plan.
