What’s the number one biggest fear of anyone who’s new to trading? In a word, risk. People worry and lose sleep at night that they MIGHT lose money, and it stops them from learning the profitable skill of trading.
However, what if I told you there were ways to minimize the risk and increase your chances of making money with options trading! Excited? Let’s dig in.
First off, many people treat the stock market like a roulette table and go in there with a double or nothing kind of strategy. Did you know it can land on black or double zero 30x in a row!? (Gamblers are busted because they don’t know it can land on black 30x in a row!)
I wouldn’t recommend that, but people do this with their trading accounts! They think, “I need to make more money!” so they put more money into a trade. That’s ok if your account is big enough, but… It’s not about the amount of money.
Putting more than 20% into any trade and limiting losses to 10% (of that 20%) is actually a good and prudent thing! That means you’re only risking 2%.
Now, If you’re making 2% of your account, It might feel like baby steps and you’re not making much… Those are incremental gains, and it starts to add up fast.
If you play double or nothing… You get wiped out and then you don’t have an account to trade with anymore, you don’t get to play.
However, if you practice until you’re good (risking no money in practice)…You’re doing well with the practice data and your making money four out of five trades… and you limit how much you’re investing so your investment account has a high amount of money in it, you’ll never get that kind of interest from a bank! You’ll be making money.
Getting results with minimal risk
Chances are you’re curious about how you could actually MAKE money trading stock options. You certainly could, with the right training. We’d like to give you a completely free guide titled: “Making 10% in 10 minutes”.