Fair question: “Why aren’t we seeing you trade your account, Hugh?”
The answer is simple. When your big ticket items such as houses and cars are paid off, when the kids are done school, when you are living comfortably, why put more money at risk? As part of risk management, it would be foolish to continue trading real money day in and day out, just to show someone how to do it. In fact, when I did display my trades, I often heard the following: “Hugh, you’re invested with hundreds of contracts in one trade and I only have 3 contracts? I’m not in your league, I’m gone!” Then when I traded only 10 contracts, I heard “Wait, I’m in this for $50k at a time taking direction from some yokel with only a grand on the line? I’m outta here!” So there was no winning for me. I was always defending my position.
Moving forward, I displayed a simulated real time account and turned out, nobody really cared if I showed my real account or not. In fact, I am able to demonstrate strategies and ‘what if’ scenarios using a sim account without risking a nickel. Viewers appreciate these lessons, such as the other day when I outlined what can happen if I buy puts and how they may not pan out, given a major bounce off support. By buying them in a sim account, I was able to ride it through the flow, proving my point in a clear manner. The Trading Room participants absorbed it first hand, and not a penny was lost in the process.
Do I trade in real at all? Yes, of course I do, but I may not trade every day. And just because I personally may not enter a position does not mean I don’t support a particular trade/setup. It just means that I may not have felt the need to put cash on the line, or didn’t feel like distracting my focus from you, the participants in the Trading Room. I may not be around to watch the markets all day or wish to be concerned about it. So, nothing to read into… I do trade my strategy and that’s all I trade. No swing trades, no spreads, no nakeds, just my simple, every day way to earn a decent gain using my signature ‘bread and butter’ technique.
‘You know what they say, just buy low and sell high. It’s another great day, SPY options, my oh my!’, as one member wrote in! 🙂
Hugh W. Grossman