Hey Greg and lions, how does stop-loss work in this strategy?
For example, if I make a trade and it give me a 5% profit, then I make another trade and it is not going in favor of my direction (let's say the market crashes), in this case wouldn't my loss be much bigger than any possible profit? As options lose their value as they approach expiration (I know expiration for these trades should be almost a year away, but still...) Therefore, do I need to use a stop-loss?
I know I should not put much of my total % in the same trade, but in this case if I'm positioned in many different trades (as Greg occasionally is), in an eventual huge stock drop, I would be burned to the ground... so, should I use a stop-loss?
I am a rookie and trying to learn. Thank you for everything!
This trade is looking good so far. I was kind of hesitant getting into it since I already have quite a bit of money tied up in financials in the form of XLF which also holds quite a bit of JPM already.
Hey Greg and lions, how does stop-loss work in this strategy?
For example, if I make a trade and it give me a 5% profit, then I make another trade and it is not going in favor of my direction (let's say the market crashes), in this case wouldn't my loss be much bigger than any possible profit? As options lose their value as they approach expiration (I know expiration for these trades should be almost a year away, but still...) Therefore, do I need to use a stop-loss?
I know I should not put much of my total % in the same trade, but in this case if I'm positioned in many different trades (as Greg occasionally is), in an eventual huge stock drop, I would be burned to the ground... so, should I use a stop-loss?
I am a rookie and trying to learn. Thank you for everything!
This trade is looking good so far. I was kind of hesitant getting into it since I already have quite a bit of money tied up in financials in the form of XLF which also holds quite a bit of JPM already.