Risk/Reward Basics Bypassed In Hedge Fund Blowup
Last week, news of a hedge fund blowup spread over financial media. On the wrong side of sharp moves in energy markets, James Courdier, OptionSellers.com money manager, notified his clients that all is lost. His Tampa-based options firm sent millions of dollars down the drain. He put out a pathetic, insufferable, ten-minute apology video, placing blame on a “rogue wave,” which capsized their boat.
His blaming a rogue wave is a tidal wave of baloney.
Checking the markets with a glass of wine isn’t piloting the ship properly. Successful speculation takes knowledge, discipline, courage, and hard work.
Here are a couple key lessons you can glean from the OptionSellers disaster, so you can avoid getting tossed overboard.