Risk management has to be our number one focus right now. This is no time to be lazy, hoping, or praying.
Yes, if you’re willing to wade in carefully, there can be some great opportunities for premium selling. But even then, we still have to be extra vigilant in protecting our capital.
I bring this up because I received an email from someone recently who didn’t follow his rules, and now finds himself severely underwater and wondering what to do next. We’ve all been there. Something unexpected happens, and now we’re like a deer in the headlights too frozen with indecision and unwilling to make any move whatsoever because we’re afraid we are going to compound the situation for the worse. It sucks.
Here’s the situation my friend finds himself in. Let’s learn from this. [Read more…]