writing some naked calls in SBUX. But still, my total account is up for today due to my long/short strategy! Just covered SBUX positions and locked in the losses in that position.
I have a loss of 1.400% by
- Thread starter heilbronner
- Start date
uuups, sorry, it's not 1.4% but 1400%.
That you can overcome substantial losses in one position by taking advantage of a long/short strategy with multiple positions.
Definitely, I'm also big surprised that I can take this kind of losses without problems. IMHO -1400% that is some kind of worst case. But you have to be prepared for such events.
No, I don't trade short as there are more than enough opportunities for long profits. While I do appreciate that there is value in the short side for some trades, or traders, that does not include short calls, under any circumstances. Very limited profit for virtually unlimited risk. One bad trade can easily erase months of gains. You could not invent a worse trading scheme if you tried.
of what? Of the original risk you took in the trade? How much is that? If your account is $100,000.00 and you risk .5% of that, or $500, you just lost 14 times that, or $7,000, or 7%. Quite a lot on one trade, but survivable I guess.
But if you have a $20,000 account, you lost 30% of that, and that way you will last about as long as if you go to a casino and bet 30% on a color.
What I mean is 1400% means nothing. How much did you risk?
But if you have a $20,000 account, you lost 30% of that, and that way you will last about as long as if you go to a casino and bet 30% on a color.
What I mean is 1400% means nothing. How much did you risk?