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I have timed the market before, sat out most of 2008/2009 in cash:) lucky me. But, I watched helplessly during the dot com bust as I lost half my assets. so i am batting 50/50. I didn't have in any money in 1987 :(.

most of my hedging is with put ratio spreads. TMF Pro uses this strategy quite frequently, usually using etf options on QQQ, MDY and SPY. I do them with futures options because I can cover more portfolio with fewer contracts. They're doing very nicely, I get paid to open them and they climb in value as time passes, and jump in value when markets drop (you lose on massive drops).

TMF Pro and TMF Options services use a lot of options, and I generally follow their picks, short puts, calendar spreads, covered calls and the like. You should read up on it, and consider the service. It is NOT gratuitous gambling. I learnt most of my option trading from these two services.

These option strategies are actually engineering higher returns when done properly and reduce portfolio risk. Seems counter intuitive. I don't speculate with options much (e.g. I bought 6000 FB $20 leaps when FB was $15 and exercised them), and I don't "Trade" anything short term, though I might take a scalp now and then. Commodities are an interesting game, and TMF doesn't entertain them. Too bad, they can be terrific. But agreed, they can be weapons of financial destruction (buffett).

My post is really about being shocked having so much cash all the sudden. I expected to be like a kid in a candy store. Instead, I am being a little paralytic with the market in its current condition. I find that surprising in me.

Yes, I will make slow and judicious picks, and ease my way in without rushing.
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