Entering text into the input field will update the search result below

Welcome to 2011!

Jan. 10, 2011 12:00 AM ET
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

By Rick Walter

What a year it was in the markets in 2010. It was extremely difficult to make money in the markets in 2010, although most major indexes ended the year on a positive note. The issue was do you sit tight using a “buy and hold strategy” or do you “trade”, taking profits as they occur, or do you use a combination of buys (going long) using puts and calls options to hedge and protect your positions, a strategy that I have tried numerous times over the last three years without much success.
The market played-out like this in 2010: it initially started off on a down note then picked up steam through April; the markets then “flash crashed” in May but recovered quickly; then the markets stalled during the summer but again picked up a little steam in the Fall- just enough to get you excited, and then came to a screeching halt around November- December. You needed balls of steel to trade effectively last year or the fastest computers on the planet.

Unfortunately, I had neither- lol. I misfired on a number of positions –either buying too soon or selling too soon. I hesitated repeatedly and missed the run on certain stocks, where from a technical standpoint, I should’ve been buying like there is no tomorrow; I shorted while I should’ve gone long on technology and almost lost my shorts. In the final analysis, I learned that a profit of 5% earned is still better than 5% not earned. Even though I made numerous missteps last year, I still made money. I look forward to great things this year, and hopefully we can all make some money in 2011.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.