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 starting the first of our little mini-series here at Option Alpha, getting back to basics and talking about some options trading golden rules and we’re starting off today with options trading golden rule number one which is small positions. Now, honestly, I’ve been harping on small positions for over 10 years. Before many people out there and many companies out there were talking about the importance of small positions, I knew that this was something that was critical to everyone’s success as an options trader when I first started and I’ve got blog posts and archives that show that we've been talking about this for over 10 years now. But the idea behind small positions is nothing groundbreaking. It's actually a very simple concept and the concept is that we don't know when our distribution of profits and losses are going to come. And so, when we don't know what the sequence of returns we’re goi