10 Commandments for Successful Options Trading
Ken Trester, June 25, 2009
Free Trading Guides
-
Commandment #2: Diversify
Don't put all your eggs in one basket. Try to invest the same dollar amount in different positions to lower your risk.
Also, buy puts and calls on several stocks in myriad industries, and be sure to spread your purchases throughout a 12-month period so that you're profiting year-round and/or so that you're not getting hit with losses all at once if the market hits a rough patch.
More By This Expert
Use Limit Orders on Options Trades
If buying inexpensive options makes you 'cheap,' then profiting from them must make you 'rich'!
Short-Term Gains Using Long-Term Options
Stock options are excellent speculative vehicles and can be inexpensive to boot!
The Thrill of Expiring Options
A diligent trader can make big money buying expiring options. But you have to be ready to move quickly.
How to Initiate a Credit Spread
We'll show you how our subscribers made a $400 return in less than two weeks with this two-step strategy.
4 Factors in Play With Options Trades
Frenzied market activity and volatile price action can be a option trader's friend or foe.
MOST POPULAR
- What's Hot: DELL, DHI November 20, 2009
- Sidewinder: MCD, DKS, JPM November 20, 2009
- Options News: SII November 20, 2009
- Sidewinder: CY, ADSK, KG November 19, 2009
- Options for Dummies November 19, 2009
Options Broker Center
