The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about options trading golden rule number 10, adjust to reduce risk. This is one that I’ve had as kind of a rule for myself here for the last five or six years and it’s this idea that when we make adjustments, we need to adjust to reduce risk and increase the probability of saving the position or losing less money. And this is really important because I see a lot of people are fearful of taking a loss. I don't care if I take a loss on a trade. I know that losses are part of the game. It’s part of what I expect to happen every single month. I’m not going to be 100% profitable on every single trade. But what I should do as an active trader is I should look to take trades that are going to lose money and figure out ways to lose less money and this means that sometimes we adjust positions and we roll positions in order to give ourselves more time and more premium to reduce risk. But I will n