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When trading with options you
must have a systematic money management approach. It's just
not good to ever 'go for the gusto' with half, 75% or a 100% of your
account on anyone trading idea, ever. If you succeed that one
time, sure that will be nice in the short-term but what you've just
done is created an addiction stronger than the addiction that comes
with crack cocaine.
The problem is, once you over leveraged
your money once it's hard to go back to proper money
management especially if you lose. Because once you've opened
the 'Pandora's box' of over leveraging you always feel like you can
go back to it again, a.k.a. bet the farm. So if you lose a
little on one trade, one day, you may get mad and throw your entire
accounting for the next rate, and that is a very bad idea. And
it's been done more often than you think.
Even with running the best of
options trading systems you want to keep your bets even and your
maximum position size under 10% for small accounts, under 5% for
larger accounts and one to 2% position sizes for big
accounts.
The key, the secret key to
obtaining massively awesome returns with an option trading
system is to use partial compounding. Let's say you
double your entire trading account in two or three trades.
What you don't ever want to do in that position is double your
position size, that would be 100% compounding. Why?
Because you get stopped out of the trade in options trading system,
particularly a directional trading system that falls a stock, and we
are talking about stock trading options, you or you will lose at
least 30% maybe 50 or 60% on that option position. So if
you're trading double your options size your inexperience double
loss which could rapidly take your account down to zero. For
effective options trading compounding, try compounding at 20% to
30%.
How do we know this?
Experience! Plus we have experience from watching hundreds of
other traders and students struggle with with their options trading
money management.
This reminds us of the story of
the hare and the tortoise. In options trading you want to tend
to always slow yourself down. The leverage is so fantastic
that you'll make incredible mind-boggling gains especially in an
options trading system like OPIVO Trading.
We suggest that you give OPIVO
Trading at least a three-week trial. Use paper trading,
pretend like you're trading in real time to just write your orders
down on white paper. You really need use your imagination in
order to make it as real as possible. Any you'll need to track
your order, stack your options positions.
Just imagine, what would you do
if you ran OPIVO Trading's option trading system portfolio and you'd
set every options trade in 2007...if you used an option contracts
per trade it looks like you did made about $2 million. Hmmm...
that would pay a few bills in a few mortgages. But you need
and "even betting approach" when trading options. That $2
million figure was not a compounded figure. That figure was
derived from using the same trade size for each trade.
Even if you had $1 million in a trading account using the same trade
size of 10 contracts is not a bad strategy at all... that's how you
stack the cash.
OPIVO Trading allows you
a new great angle for your online options system trading. You can
take a three week free trial, no obligation. And at three
weeks you should be able to see plenty of OPIVO trades. in
order to get more information on OPIVO Trading simply fill out the
form below and you will be transported to a free report on OPIVO
Trading.
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