I believe managing risk is the most important and most overlooked component in the trade determination process. Regardless of your emotional feeling about any particular position it all boils down to maximum risk in case you are 100% wrong. That's all. Managing risk is the "hat" you wear to protect your asset.
Options are sold to the public as limited risk vehicles. That is just not so. They are a 100% risk on your invested capital.
Conventional options, sold by "salesmen" to the unsuspecting public, using high pressure tactics and the lure of getting rich, can do only three things. They can go up... they can go down... they can stand still. Two of these three things are against you. You have given the most brilliant trading minds in the business 66% odds against you before you even begin.
Consider Synthetic Futures. Synthetic simply means manufactured, or man-made. It is a Future in the primary direction of the market and an Option for protection, or risk management, instead of a stop. A Synthetic Hedge gives you both sides of the market, a predetermined risk, and you do not use a stop until you are ready. Put yourself in charge of your money, not the whims of the market or prearranged news announcements.
How to Contact
Charting Your Futures
or technical questions
for Jay Gallemore
Telephone: 1 (626) 355-6240
Sierra Madre, California USA
© 1989-2018 Charting Your Futures Brokerage Company
Past performance of actual trades or strategies cited herein may not indicate future results. Trading in futures and options entails significant risks of loss which should be understood prior to trading and may not be appropriate for all investors.
Please contact CYF Brokerage for our unique way of handling these risks.