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Manage your risk by setting stoploss orders and controlling your position size from "summary" of How I Made BIG Money Trading Stock Options by Carl Schoner
To trade options successfully, it is crucial to manage your risk effectively. One way to do this is by setting stoploss orders. Stoploss orders are predetermined points at which you will exit a trade to limit your losses. By setting stoploss orders, you can protect yourself from significant losses if the trade does not go as planned. In addition to setting stoploss orders, controlling your position size is another vital aspect of risk management. Position size refers to the number of contracts or shares you trade in a particular trade. By controlling your position size, you can limit the amount of capital you have at risk in any given trade. This can help prevent catastrophic losses and ensure that you can continue trading even after a series of losing trades. When setting stoploss orders, it is ess...
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