If an investor is going to successfully make money trading weekly options, he must come to an understanding that a weekly options trading system is more than just an options strategy.
Weekly options trading system not only includes an options strategy, but also must address other issues like: risk management; accuracy; options strategies and profit targets.
Risk Management
Trading weekly options, in fact trading any type of options without a risk management strategy is like playing Russian roulette with your money.
Nobody who knows what they’re doing goes into a trade without knowing how to exit the trade if he does not go their way.
I truly believe easier to make money than it is to keep. I can show anybody how to make money in fifteen minutes send them into the stock market and the probably do well for the first 3 to 6 weeks. There will come a time though when the trade will be threatened and they will not know what to do. At this point the probably in them losing more money than they started with.
A weekly options trading strategy includes knowing how one will exit a trade to lose the least amount of capital. This is why it’s called risk management.
Accuracy
How often are your trades winning trade? What can you expect to lose? For every 100 trades you make, give them will be losing trades?
Profit Targets
How much are you going to make the trade? This seems like a minor question, but it’s not. It will dictate everything else about the trade.
Read the full article at http://tradeoptionsweekly.tumblr.com/post/98304797120/a-consistently-winning-weekly-options-trading-system
Weekly options trading system not only includes an options strategy, but also must address other issues like: risk management; accuracy; options strategies and profit targets.
Risk Management
Trading weekly options, in fact trading any type of options without a risk management strategy is like playing Russian roulette with your money.
Nobody who knows what they’re doing goes into a trade without knowing how to exit the trade if he does not go their way.
I truly believe easier to make money than it is to keep. I can show anybody how to make money in fifteen minutes send them into the stock market and the probably do well for the first 3 to 6 weeks. There will come a time though when the trade will be threatened and they will not know what to do. At this point the probably in them losing more money than they started with.
A weekly options trading strategy includes knowing how one will exit a trade to lose the least amount of capital. This is why it’s called risk management.
Accuracy
How often are your trades winning trade? What can you expect to lose? For every 100 trades you make, give them will be losing trades?
Profit Targets
How much are you going to make the trade? This seems like a minor question, but it’s not. It will dictate everything else about the trade.
Read the full article at http://tradeoptionsweekly.tumblr.com/post/98304797120/a-consistently-winning-weekly-options-trading-system