Lions.. we are in the business of risk, traders need to take on risk at various levels in order to profit from this market. When markets fall under pressure, often times we find the best opportunities to take on more risk- attempting to capitalize on “overshoots” to the downside and FEAR.
If you notice, on down days I tend to buy and add to current positions. Essentially what I am doing is taking on risk.
GM
I suspect Pelosi will not agree to deal. Why give Trump another win just before the election? - she would think. No deal could mean a crash because the next stimulus will come in Jan 2021 Too much risk here. I am staying on the side line till the election day.
At what point do you decided to take on more risk? When your position is down 5% or 10% or is it more? When you take on more risk do you typically double your initial investment to lower that average price for the option or just put the initial amount you invested in? Thanks for and insight!!