The Last Column of 2013

Unless something truly unexpected happens in the next two weeks I will be closing my books and relaxing for the rest of this year.

It has been a very good year for me personally as well as professionally, and I hope for all of you out there as well. On the positive side, my readership and client base have both grown very well indeed. On the less than positive side, I missed the Great Rally of 2013 completely.  If you would've told me last Christmas that the S&P 500 would be over 1800 this Christmas I would laughed in your face.  Well I guess the last laugh's on me. Which is why, I s'pose, that I am an educator and not a financial adviser.

Having said that, here is some free advice (which is worth exactly what you pay for it): If you own stocks you've had a wonderful year. If you choose not to take some profits and as the old saying goes, "no one ever went broke taking a profit", then here's a couple things that you can do.

One: Take a double. Meaning, when you can sell one half of your trade or position so that the other half is free, do it. It is both sound discipline and responsible money management. And, hey, now you're playing with the House's money.

Two: Take advantage of the very low option premiums and purchase some downside insurance in the form of put options. Historically seen, options implied volatility is low. That in itself is a cautionary sign as it suggests both complacency and under insurance. Out of the money puts are cheap. You can buy them and keep rolling them over each expiration. Don't forget, you want them to expire worthless. While we all pay for fire insurance on our home we certainly hope that we'll never have to use it.

In conclusion, I anticipate a banner 2014 for The Liss Report. I will be launching a new upgraded website early next year, which will include such features as live internet radio. I intend to put more emphasis on new developments in Options Land, such as Binary Options. And, while won't promise not to be controversial, I do promise to do my very best to be both informative and entertaining.

Have wonderful, joyful holidays full of prosperity, peace and love!!



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