Karen the Supertrader

Very impressive but very risky. What do you think?

[m.youtube.com]

Basically, one wrong trade could wipe her out?

flsupraguy,

The strategy she uses is selling delta 5 naked strangles which require a portfolio margin account > $150,000. It can be very safe if you have the discipline to get out with a small loss when trade moves against your short options at the right delta or loss dollar percentage, or have mastered the art of adjustments. If you don't have discipline and money management skills, and you don't know how to adjust that trade, only then it is risky. 95% of the time you win and 5% of the time when trade goes against you then you can make adjustments or get out at a preset loss amount. Correct me if I am wrong but she lost only once or twice during 2010 and 2011 market crashes with minimal losses. She didn't go from $800,000 to 40 million and now managing >$100 million funds with pure luck and employing risky strategies.

I had already decided to comment before clicking on your link to see which YouTube videos were referenced. I was gong to suggest navigating over to the TT site. I watched all the interviews with TT as they were released. TT post interview discussions provided some insight on how she probably managed her positions using TOS. Another point of emphasis. She spent years learning and practicing before ever stepping out there with real money to ensure she understood the process. She also didn't go from $800K to $100M by herself. Although she did a fantastic job and blew away returns by the top pros, she also picked up some investors along the way that helped her total account balance grow significantly in the early years (i.e., it's not all her money). I also found it interesting that, like some other very successful folks, she does not like talking about her trading success. She would rather talk about the good her charitable trust is doing in other third world countries.



Edited 1 time(s). Last edit at 02/05/2016 12:42PM by NCTrader.

Thanks for the comments, this video goes into greater details on the mechanics if anyone else is interested.

[www.youtube.com]

I humbly recommend you stick to garys lessons. Remember basic rule do as instructed.


Btw Karen was a liar.
[steadyoptions.com]

If you do your research on this lady/trader she went bankrupt and lost a huge amount of $$$$$$$$.