I see so many people here losing their life savings at a critical point in their lives so I’ll repeat my investment philosophy that has allowed me to be 270% up YTD, and I’ve already taken out my initial investment and 75% of my profits:
- I always ask myself, if I had the option’s value in cash, would I still buy the option? If the answer is yes, I hold even tho I’m up 1700%. If no, I sell even at -95%.
- Stop losses could help too. Always be within your personal risk tolerance.
- Only buy options u believe in, think for yourself, write down why you’re buying an option and question your assumptions frequently.
- Always listen to valid arguments from people who oppose your positions.
- Have an acceptable risk profile and never jack yourself to the tits, always keep some cash so you can DCA your options.
- Look at the greeks carefully and buy options with low IV, low theta, high delta and acceptable gamma.
- Realize that weeklies and holding through earnings is pure gambling and treat them as such.
- Always hedge a little bit, if you’re bullish just a few VXX calls and cash will be enough to bounce back if the market doesn’t go your way.
- Have <10 positions open at any time so you can track them easily and close them quickly if need be.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.