I’ve received a ton of great emails from subscribers over the last couple of days about huge profits this year. I’m thrilled that you are making lots of money.
That said, while it’s great that we are making good money, we must remember the risks as well. At some point, every trading system is going to have a couple of stinkers, and you want to make sure those don’t do outsized damage to your portfolio (or even more importantly, to your confidence).
So while I’m thrilled that the picks have been hot, remember to not press too aggressively, because as at some point, I will surely cool off. Keep your allocation to each trade at a reasonable level. My recommendation is 2% to 5% of option trading capital to each trade. NEVER go all in, and it has been my experience that you should never double down on a losing position.
That said, until I cool off, or the market’s tone changes dramatically, we will keep trading aggressively with our big winners, going for more home runs and grand slams.