📚📈 Options Trading: The simplest risk management strategy

The video is about options trading and risk management.

The speaker says that putting 50% of your portfolio into an asset class that can go to zero quickly is poor risk management. He advises against this by sharing his own experience of losing a significant amount of money by putting 30% of his savings into a single option.

The speaker says a better approach is to only allocate a small amount, like 5%, of your net worth to options trading and to have multiple options open at the same time. This way, you are taking on very little risk with each option. The speaker believes that this is a better way to get ahead in the stock market. Overall, the video argues that the simplest risk management strategy in options trading is to take on very little risk.

[PalmBeachPeter]

Zero can happy really quickly. Taking smaller risks won't hurt as much as losing net worth and watching it go up in smoke! I've had a few! Thanks Greg!