Remembering TEOTWAWKI and Learning from It

Its only been about 5 years since we had great fear in the market with regard to Y2K. One might recall that many computer systems were not programmed to be able to understand the change from 1999 to 2000. There was a huge amount of panic created by those who were convinced that, as the clock struck midnight on New Year's Day 2000 that we were to enter the Middle Ages.

By my analysis did not occur unless .... I slept through it and no one bothered to wake me up! (Note to self: Make sure my personal alarm occurs when Y2K!)

The word that is supposed to learn and to understand it; TEOTWAWKI ....( the end of the world as we know it) It was a word created by the Y2K scare.

I think there is a very profound lesson to be learned from the Y2K scare. This forecast is that it is very appropriate. The real problem with dealing with life itself is to manage risk. Risk can be defined many ways but usually they are not prepared for the future and embracing an opinion.

The only advantage of living in a free society is that we are lucky to be exposed to many points of view on a daily basis. As players we must continually learn to distinguish the difference between fact and opinion and determine how the new data may affect us.

For those who do not learn to do this, the end of the world as we know it reflects in their own portfolios. For the rest of us all we can do is learn to manage risk. It 'the only trade secret there.

There are two schools of thought in the trade .... TEOTWAWKI and risk management. You make the choice.

The only constant in life is change. Not expected. Managing risk.

Dowjonesfully,
-Harald Anderson

http://www.eOptionsTrader.com.

Harald Anderson is the founder and Chief Analyst of eOptionsTrader.com a leading online resource of Options Trading Information. He writes regularly for financial publications on Risk Management and Trading Strategies. His goal in life is to become the kind of person that his dog already thinks he is. http://www.eOptionsTrader.com.

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