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I personally prefer to use options to define my risk. With options you can limit risk without getting stopped out. Here is some more info: http://theperfectpassiveincome.com/index.php/2016/04/04/a-better-way-to-limit-risk/

This info might give you more insight. http://theperfectpassiveincome.com/index.php/2016/04/01/nobody-can-pick-a-direction/

Yes. Remember this is my opinion after 23 years of trading. Others have other opinions. Based on my experience I recommend learning about options in order to create an edge.

Your reward would be twice your risk however the probability of losing would be twice your reward. In other words you would make 2X more for each winner but you would have 2X more losing trades. This all adds up to a zero gain without commissions factored in.

With a profit target and a stop loss well defined you need to have an edge. If you can pick a direction then you will make 5% more than you will lose 5% thus make a profit. Many traders believe they can find an edge by picking a direction using fundamentals or technical analysis. If you can find...

Everyone trades in different ways. I am more of a black and white rules based trader so my questioned are designed to look at your objective side. For example if you were to say you take profits when your up 5% and take losses when your down 5% I can build some context around that with my...

In your long stock positions do you place stops? If so where? In your covered call positions do you place stops? If so where? I personally don't see to much of an advantage in purchasing a stock ahead of dividends because the stock itself goes down in value equal to the dividend amount.

It has a lot to do with your strategy. Can you give me more info about that? If I have a better understanding I can put myself in your position and see what I would do.

Some traders use Volatility which is related to Vega and Theta in order to determine trade genesis. They can open trades with a statistical edge with these metrics. Understanding Delta and Gamma can help with adjustments in order to control or reduce risk. If you are trading options the Greeks...

In my options portfolio I like to keep my available capital at 70-80%. It gets much lower than that when I have to extend duration depending on what system I'm trading.

On TLT the Ex Dividend date of the last dividend payout was 4/1/16. If you were short TLT as of the close 3/31/16 the day before you would have been positioned on 4/1/16 at the open short and paid $27.00 per every 100 shares short. They debit your account later.

I agree you do need an edge. You don't have to be right on direction to create an edge . If you understand Options , Probabilities, Volatility AND Proper Money Management. You can get that edge. If you believe you found an edge by picking direction forget it without proper Money Managment.

Most traders lose in my opinion because there is not enough focus on the most important aspect of trading, money management or trade management or portfolio management, I have heard many terms. The bottom line is the mechanics of allocating funds is so overlooked and perhaps the most important...

It means you should pay extra attention to possible downsides and think about scenarios to handle those.

I have developed countless systems over the last 24 years. I call them systems because I think systematically. At first I started using fundamentals (Picking direction based on a story). I later moved into technical analysis. Today I trade options based on picking a range rather than a...

Maybe the answer to this question would clarify. Is selling a iron condor directional? My definition of directional is that no its not. Maybe your definition of directional is that it is.

Maybe the answer to this question would clarify. Is selling a iron condor directional? My definition of directional is that no its not. Maybe your definition of directional is that it is.

Prices being random would that mean that its possible that SPY could go to 0 or $1,000 by next week? In this case markets are not random they do have a predictable range. Predicting SPY direction up or down by end of tomorrow that's another thing that tends to be random.

Maybe the term money management should be replaced with trade management as previously suggested.You can sell an OTM call which is short in direction and you can still profit if the underlying rises within a certain range. Thus being wrong in direction and still making a profit.

When you say "achieve positive win %" are you implying that you need to pick the right direction before you can be a profitable trader? Do you consider me a directional trader if I only pick a range not a direction? I don't consider my self a directional trader so in my case I place a lot of my...