Trading Tips

Remember, the most important things you need to know about any trade you ever do are

  • your maximum risk on the trade;

  • your maximum reward on the trade; and

  • your breakeven point(s).

OptionEasy’s Analyzer gives you these crucial figures in both nominal and actual formats for 64 different strategies.

In addition, you also should know in advance:

  • the maximum loss you will accept and when to get out of a loss-making trade and

  • when to take your profits.

These are crucial money management criteria, which you must preset in your own mind (and preferably on paper) before you commit to any trade. There are wide parameters concerning money management techniques, and much depends on your own appetite and respect for risk. Just keep in mind that ...

Get Options Made Easy: Your Guide to Profitable Trading, Second Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.