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,

Alan Knuckman

Alan Knuckman
Editor, In-The-Money

Trading Tip of the Day: Don’t Let a Single Trade Wipe Out Your Portfolio

Greg Guenthner
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

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Alan Knuckman

Alan hails from the home of options trading in Chicago, where he began working as a clerk on the floor of the Chicago Board of Trade (CBOT). Beginning with his days on the floor, Alan’s worked with all aspects of the options markets for the past 25+ years.

Transitioning from a clerk to a floor...

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