The Strategy of Hope

As a kid, did you ever toss a coin in fountain at the local mall? Or maybe when you were older tossed a quarter down a wishing well? You made a wish right? Even as an adult, you probably made a wish. As a kid, we had the chance to believe, but as adults, we know we are just throwing money away. Why? It provides hope. Unfortunately, the wishes don't come true for the cost of a quarter. The hope is only temporary. It's a fleeting dream that is replaced by reality, leaving us to toss another quarter in the next fountain.

It's the same thing in the stock market, but with one major difference that is quite ironic: We know that hope isn't a winning strategy, but it's still a strategy. And we know just about every single person will dump on you for tossing a coin in the market fountain, otherwise known as buying a lottery ticket. I've seen many a trader jump on a nickel or dime option set to expire in a few days or even the next day in hopes of seeing a stock rocket or plummet for a huge score. It's a dream trade. It's a trader's wish. The nickel call for the Google (GOOG) $1,000 calls set to expire the day after earnings that hit $10 or $12 the next day, turning $50 into $10,000. Get that from your average shopping mall fountain....342 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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