Understanding trading psychology can help you learn from your failures and successes to keep your cool, especially after a hot season of winning trades.
The next time you find yourself in a winning trade and think you can squeeze a little more, consider a few strategies to reduce your risks without giving up on more.
Three options strategies on how to exit a winning or losing trade: long options, vertical spreads, and calendar spreads.
Learn how a covered call options strategy can attempt to sell stock at a target price; collect premium and potentially dividends; and limit tax liability.
Risk controls are an integral part of any trading strategy. Learning the 2% and 6% rules may help you develop a plan to control your risk.
Learn how certain order types such as the limit order and stop-loss order can help you implement your exit strategy for options trades.
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Content intended for educational/informational purposes only. Not investment advice, or a recommendation of any security, strategy, or account type.
Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.
Market volatility, volume, and system availability may delay account access and trade executions.
Past performance of a security or strategy does not guarantee future results or success.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.
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