One of the most important things a trader can and should use in the stock market is a risk-management strategy... I preach this constantly because that’s how important it is.
We’re all here to make monster returns. And one of the first rules of investing and trading is don’t lose more money than you make.
But there’s one risk-management strategy that’s highly overrated when trading options… And that’s the stop-loss order.
They’re such a commonplace and blunt instrument that the big, market-moving players and institutions can and will sell their positions just to try and chase out other investors’ stops, driving a stock even lower.
It's just one of the legal dirty tricks the big boys use to put themselves in a better position to buy dips and sell rips.
But whether the market makers force our hand, or a stock keeps dipping lower until it stops out, there are better risk-management strategies that can help traders move a few of those losses into the win column...
And I’m more than 4,500% certain it works, because I saw it happen this morning!
Mainstream Media Pumps Blitz Trade for a 77% Win — Overnight! November 24, 2021
It’s no secret that I’m not a fan of low-volume markets. But there’s one silver lining from that low-energy environment... When big trades hit the Blitz Tracker, they really stand out!
How Liquidity Can Make or Break Your Options Trades November 26, 2021
I have a lot of gripes about low-volume markets like the holiday week we’re in now. Having tons of traders away from their desks can be especially maddening when trading the rest of us are still trading options.
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