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.
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