RISK MANAGEMENT STRATEGIES
Finding a good put credit spread is what this service is for, but you will still need to have a good exit plan. Below are strategies you can use to manage both winners and losers.
Set a sell order for a 20% gain and just wait for it to fill.
Set alerts for when the underlying stocks breaks above or below key areas.
Divide your options trading account by 5 or 8 and make that your position size.
Keep your expirations 3 weeks to 45 days out.
Take profits. You've earned it. There is no reason to trade your account to infinity. Go ahead and transfer some of that hard earned cash to your checking account.
Dont bag hold bad losing positions. We will do are best to alert you when we ourselves cut losers, but there is no shame in cutting a loss. As long as you are diversified and engaged in proper risk management it is okay to cut losses now and then.