SPY. SPY Options. SPY, Option Trading, Online Trading, Trading System, Strategy, Options Trading, SPDRS, S&P 500 |
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Reinvest only the original trade principal, following a winning options trade, never the principal plus the profit! If your trade allocation for options is $1000 for instance, and a previous trade provided you with a $500 profit, we strongly advise against reinvesting the full $1500 into your next options trade. We suggest applying only the original $1000. Should you have a (total) loss due to an option expiring worthless, this way you would still have $500, your profit from the previous trade. Particularly tempting market situations can arise, periodically, which may entice you to commit more of you trading capital to options than originally allocated. A few situations that might persuade you to abandon discipline are:
Don’t be tempted to break the rules under these or similar circumstances! Never exceed the predetermined amount you allocated to options trading.
Just one winning trade |
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