The latest tips, trends, and PICKS for aggressive OPTION TRADING and STOCK TRADING!
Incredible returns with carefully managed risk. see 40-250% returns.
remember to manage time decay on your option trades. as you approach expiration, this factors in much more heavily. if your trade doesn't have about 45 days to breathe (or more), it is time to start thinking about moving out of a losing trade. adjust trailing stops as necessary.
the risk/reward curve cannot be bypassed, but it can be bent. mitigate risk by carefully timing your trades. control all aspects of the trade; expiration date, strike price, and limit price. have a concrete reason why you chose each part of your trade.
i hope these tips helped. i have seen and talked to a lot of people recently who invest in options but cannot speak intelligently about how they work. leverage works both ways. options are a tool in your arsenal, not a secret weapon. put in the time to learn. paper trade.
-there is no way around the risk/reward relationship. it's always better to miss an opportunity and live to invest another day. new opportunities pop up every day. the next big thing is around the corner.
-pay yourself. when you take profits, put some in your bank. if you dont take profits, your investments are just numbers on a screen.
-stories in the news about investors striking it rich in one shot are outliers. dont chase fantasies; "yoloing" your money is just gambling
-set rules for yourself. when will you exit a loser? when will you take profits? what is your target price?
-follow your plan. you can modify it, but do not change it bc one trade is not behaving as expected. over the long run, you only stay in the game if you have discipline
-do your research. hunches fail. you should be able to explain exactly why you are investing in something
-you should also be able to explain why you chose the method of investing that you did, and what timeframe you are looking at.
-diversify. options are great, but if you have more than 20% of your portfolio in options you are very exposed
-watch the trend. many people cut their wins short by taking profits too early and extend their losses by holding losers too long
It's an exciting time to be an investor, but remember that investing is a long-term plan, even if many of your trades are short term. you should NEVER be in a position where the worse case scenario destroys your portfolio. remember your fundamental rules of investing: