I certainly agree that Number One is one’s top priority but this priority will contribute the coming crash, if it happens. This is how rumors can cause bank runs.
As my own portfolio is now dedicated to income over accumulation I’m working on riding the rollercoaster by rolling my calls accordingly. The pun was accidental but I like it! Thus far I have just under one year experience with this trading strategy and it seems to be working.
In brief, when markets are…
- Flatlining: Good income, flatline capital gains
- Falling: Good income, losing capital
- Soaring: No income, recovering capital
For the above to work one must learn to coexist with volatility which is a lifestyle choice, and one must pick stocks that bounce back which ultimately depends on liquidity, you can’t go broke while you can pay your bills.
The Captain