When we trade the market there are very few guarantees. However when we trade options time is guaranteed.
In the markets there are many possible amounts you can win or lose with varying probabilities.
My simple plan for option traders is to figure out how many trades you can monitor at one time.
At this juncture it is more important than ever to pay attention to managing your portfolio. Phil McDonnell of Options Profits says the key is to properly manage risk for trading consistency.
The importance of this difference is reflected in the probability of making money.
Phil McDonnell explains why the butterfly strategy is one of the best ways to trade an expected sideways or neutral market outlook.
Although many traders utilize stop losses, there are many pitfalls to the technique.
Everyone loses sometimes. The key is to not lose too much on any one trade.
Let's talk about each of these risk metrics and understand the advantages and limitations of each.
The butterfly strategy is one of the safer option strategies available to a trader and is well worth learning.