Buy Yourself the Time to be Right!
If you know me, you know I’m an options guy…
I quit stocks years ago and never looked back. I made the decision to go with options as my favored trading vehicle, and I don’t regret it one bit!
One of the reasons I love options so much, besides the HUGE profit potential compared to stocks, is that you can put a little extra money into a trade and buy yourself the time needed to be right.
And if you use limit sell orders for profit targets, it’s a set it and forget it, lose no sleep strategy!
Thanks to the nature of options, a modest move in the underlying stock can create a BIG boom on the option.
All we’re looking for with the underlying stock is some breakout bullish momentum, we don’t want to hang on forever waiting for a stock to reach double digit gains.
So with options you get downside protection, freedom from staring at your computer screen, and HUGE profit potential… What’s not to love?
Bottom line: Do your portfolio a favor and give options a chance!
Keep it In the Money,
Trading Tip of the Day: Don’t Let a Single Trade Wipe Out Your Portfolio
Is there a way to never be wrong about a trade? Obviously not, but you can certainly put yourself in a position to minimize losses and maximize gains…
There is a saying that anytime you put on a new trade you should be prepared to lose the entire amount. In a way, that still holds up…
Naturally, nobody makes a trade expecting to lose… but it’s important to understand what’s at stake if you do lose.
Having a clearly defined exit strategy, managing your position size according to how speculative a trade is… these are all excellent ways to hold onto those gains and weather any downside.
However, the most important part of any strategy is discipline. What good is a strategy if you don’t stick to it?
So stay consistent and stay smart with your trades, your portfolio will thank you!
— Greg Guenthner