Trading Options And Looking To Avoid Risk?

One of the consistent goals of all traders is finding a trading system which carries the best risk reward profile.

Whether you are buying or selling options, whether you are starting your trading career or you are selling options for a living.  Whatever the case is, minimizing your risk while maximizing your profit potential is an admirable goal!

When it comes to buying options or selling options strategies, it seems almost too easy to find extremely wise people with abundant experience in the market, standing in opposite camps.

The reasoning for both methods of trading could be compelling, since both have their true merits, and expert traders of each faction hold those merits high while pointing out the great risks and perils of the other.

With that said, we take the position that regardless of which options trading strategy you choose to adopt – risk is always present, and whether you are buying options or selling limited risk options structures – risk is the name of the game!

If you are trading options and looking to avoid risk – you are, so to speak, in the wrong cartoon!

Walking into any playing field with open eyes and a clear understanding of the rules of the game you are about to play, is crucial to your success in trading.

Alas, in any area of our lives, when an element is present, which is intrinsic and natural to that space, we cannot clash with it and be successful.

When you fight and resist an element which is inherent in any domain, you are swimming up the river, against the flow. Frustration and hardship are inevitable outcomes.

Moreover, when you are unaware, or ignore any such element, you cannot control or negotiate it.

But when you finally accept that inherent element, whatever it may be.  When you come to terms with it (which hopefully you do)…you suddenly know peace.  “The truth shall set you free”.

When you accept that trading options, any system of trading options, carries risk, when you understand and acknowledge that risk is inherent in trading options (and in trading in general) you are gaining an important vantage point. Rather than disregarding the risk or working against it, you are now free to choose the risk level you are comfortable with, and manage it, which is in our view, the foundation of any successful trading system.

We hope you find this note useful.  To read more about options trading strategies, to test your knowledge with our interactive quiz, or to check out our FREE corner, visit us at www.TheOptionsAcademy.com or call us with any questions at 888-6-GET-TOA (643-8862).

Good trading and good luck!

David Rozen

The Options Academy

1-888-6-GET-TOA (643-8862)

www.TheOptionsAcademy.com

There is substantial risk of loss in trading futures options. 

Past performance is not necessarily indicative of future results.

Only risk capital should be used.