In This Chapter
Developing an option strategy list
Trading with a focus on risk
Trading is part art, part science, part adaptability to markets, and part experience. Sometimes you have to rely on your gut, although it’s best if your gut has had experience in telling you what to do and has a good record of calling it right when you need it to.
But let’s not get into a Zen detour here. You can check out Meditation For Dummies (2012) and Stress Management For Dummies (2013), both published by John Wiley & Sons, if you like. This book is still about developing specific rules and steps to follow as part of a process that gets you up and running on a path toward skillful trading. It is also equally about implementing these rules and steps with a focus on managing risk that gives you the time needed to develop your craft — and gives your gut something to work with.
A great first step on the science side is creating a strategy list. A strategy list allows you to methodically approach a new type of trade so that you gain the most knowledge and experience possible.
To get you started, this chapter outlines ten great option strategies. The common thread here is that they have limited risk and are alternatives for you to consider. The unlimited-risk ...