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 going through options trading golden rule number four which is having a balanced portfolio. As we have done over the last couple of days, we’re building on top of all these golden rules that we’ve started to develop. Number one, small positions, number two, trade count, number three, diverse tickers and now, number four is balanced portfolio. Again, this makes logical sense. If we started going through rules number one through three, the argument could’ve been made – “Okay. I can trade a bunch of small positions, I can do it a lot and I can do it in diverse tickers, but which direction do I choose? Do I always trade neutral? Do I always trade bearish? Do I always trade bullish?” And so, when you only trade in one direction or build a portfolio that is built in one direction, you dramatically increase the probability of success that a bad sequence of returns or a bad sequence of trades again, bl