Just one final word: options exist for a valid reason. But from trading perspective, the first thing any sound trading or investing system must consider is “What is the risk?”
When buying outright options, no matter how many winning trades you've had, a single failed trade can wipe out your capital—especially if you're risking too much each time.
So, if you're "lucky" enough to win your first one or two trades, do remember to take out at least one-third to one-half of your profits. Protecting capital and managing risk is more important than chasing gains.
