Preparing video...
0:00 / 0:00

Risk Management in Options Trading – Protect Your Capital (Yiddish)

75 views
Chaim Ekstein | Git Gelt Podcast avatar
Chaim Ekstein | Git Gelt Podcast

Transcript

Auto-generated transcript. Not time-synced to the video.

My lesson explaining the basics for risk management and options trading long-term success and please options trading in options trading in any trading% you have no business trading options in the lesson for educational purposes only risk management options options moves in the stock of account. So cler moves in the stock can make it or break it. account. Okay. Blowing up account. So success number one. Number one is protect capital. risk management in an account. Number one, position sizing. As a rule of thumb, a simple rule may be 1 to 2% from an account in single trade. 1 to 2%,000 account,000 with the trade so far. What is the most I can lose? Trade is a mean option trade which is a spread which is defined risk. this mind a defined risk trade an undefined risk in an instant. Number two, avoid revenge trading. Losing in a trade is part of trading. The best traders 100% winners. The best traders losing trades. The problem is you know what revenge trading. This is a recipe for disaster. plan and you stick to your planotions. Number three, diversify trades like trades in the same stock in the same strategy mix different expirations, different strikes, different stra diversified different strategies. The number one is longevity is the real edge. survives. This is the edge. Unfortunately, trace any of this subject or any underest subject in the financial market. Please comment in the comment section and like and subscribe to the channel.com/blog.