| Okay, now that you've found a good stock option | | | | 100%!). |
| trading System you are ready to rumble. You're | | | | In case you're reading this and do not have a |
| ready to start 'cleaning house' and making huge | | | | profitable Stock Option Trading System or stock |
| returns sending you and yours into a rapid luxurious | | | | there are excellent systems available through doing a |
| retirement in little under a year. | | | | little reasearch. You can try and figure a system out |
| Your excitement is understood. And guess what? It's | | | | on your own or you can short cut success by |
| actually possible because it has been done. | | | | obtaining some one else's system or service and |
| We are assuming that you've obtained a really good | | | | emulate what they are doing. |
| stock option trading system, a method that uses | | | | Here are some basic trading system approaches that |
| excellent high probability entries, well placed stop | | | | can net out consistent profits: Trade trends. Trade |
| losses and a trailing stop method of maximizing | | | | pivot points. Trade swings in the direction of the |
| profits Now it is time to talk about the 'good stuff', | | | | trend. And that pretty much covers it for successful |
| the secrets of money management in options | | | | moneymaking, directional options trading that's worth |
| trading, where the real profits are created. | | | | your time. |
| Options trading money management is the heart and | | | | If your profits are bigger than your losses then you |
| soul of making your account grow while preventing | | | | have a winning trading system. You don't necessarily |
| unwelcome disasters. Trade with intelligent money | | | | have to win more than you lose. Yes you can |
| management and increase your confidence. | | | | actually make money by losing more than you win if |
| Okay, so let's say your stock options trading system | | | | your winners are big enough and your losers are small |
| is actually making you profits. You feel that the | | | | enough. |
| system can be trusted and now you are anxious to | | | | The issue when trading options is that when you lose |
| 'up the ante' and start making bigger returns. So | | | | you can easily take a 25 to 50% 'haircut' or more of |
| what do you do next? | | | | your position just by simply stopping out through |
| Well first of all, keep trading but just keep your | | | | stock price action. This also goes to show that you |
| position sizes small, for now. It's now time to do a | | | | will want a system that doesn't lose too often when |
| little tweaking with your money management of your | | | | trading options - remember that. Plus you'll want your |
| position sizes. Doing this right could possibly make you | | | | winners to be able to be really big so trend and pivot |
| hundreds of thousands up through millions of dollars, | | | | point systems can perform the best. |
| literally. Doing options trading money management | | | | This brings up the issue of making a fortune in |
| wrong can cause you a lot of misery, pain, and | | | | options trading without losing your shirt. |
| suffering and wipe out your account quickly! | | | | There is nothing worse than making a fortune in |
| In essence, you want to keep your position sizes | | | | options trading then quickly giving that fortune back. |
| (the total amount you have invested into an options | | | | If you've ever done that you can understand why |
| trade position) even sized and never more than 10% | | | | people jumped off bridges and have tall buildings in |
| of your options trading portfolio (on a small account | | | | 1929 during the great stock market crash. It's a most |
| and down to 1% to 2% options position sizes on | | | | miserable feeling because you get so high and |
| very large accounts). With options, even if you kept | | | | excited, and happy from your gains and then if you |
| your 'bet' size the same, say 20 contracts for each | | | | lose that if worse than never having had obtained it |
| and every trade, you could make a great living off | | | | in the first place. So promise yourself now that you'll |
| just one stock even if you never increase your | | | | never put your self in that position and that you'll |
| position size. But if you wanted to taste a little of | | | | aggressively guard your profits at all times. |
| that compounded, 'parabolic' growth increase your | | | | So that said let's figure out how to grow a trading |
| options position size by 20% to 30% max every | | | | account rapidly without losing it. |
| time you double your account (never increase it to | | | | |