Understand the risks

There are good times and not-so-good times and as a trader, and it is important to understand the risks. That should be your number one concern. Selling a credit spread when volatility is low, typically causes losses so I wait for better conditions. It is better to avoid a loss by not trading when conditions are not favorable. So what I do is look at my overall gains during a longer timeframe and not so much in terms of a week or two to ensure that my focus is on risk and not on the next trading profit that I may be missing out on.

Talk soon,

Al Losada

Founder |  SimpleOptionStrategies.com

P.S. For live trade alerts, please check out our SOS Trade Alerts. We will be opening to new subscribers on Aug 3rd, 2021.

You can also check out my YouTube Channel at SOS YouTube

None of the content published on SimpleOptionStrategies.com or within SimpleOptionStrategies.com’s Telegram Trade Channels constitutes a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. SimpleOptionStrategies.com is not responsible for any losses incurred as a result of using any of our trading strategies.

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