Hi Backslash, I appreciate your reply very much. :) I also very much appreciate your honesty and all of your comments. :) Your questions are excellent and touch on the most important aspects of successful trading.
I have traded options for many years. Options are one of the most risky vehicles to trade and are a wasting asset. Options provide leverage but they can turn on you in minutes. I am not an advisor but I can share with you educational and friendly ideas.
Always have an exit plan or strategy. Plan your trade and trade your plan. Any profit you make is a good profit. There is a possibility in 2013 of wild swings both up and down in the market, this includes F too if the market tanks hard. When you have a profit take it especially if it's more than 10%. You can't get much more than 1% from a bank in a year. Take your profit and then move on. Don't push it; don't speculate on how much more you can get or would have gotten. Don't give your profits back to them. Don't vacillate, i.e., waver. Plan your trade, execute your trade and take your profit as soon as possible.
Time is your greatest enemy with options, waiting will cost you big time. Don't let your option's investment capital waste away; be prepared to take losses in options and in any investment or trade. Cut your losses and move on to the next trade. Don't allow your investment to lose more than 15-20%, the faster that you cut your losses the better. If the option or trade is going against you don't ride it down and don't "average down."
The best time to sell your option or any trading or investment vehicle is when you have a profit, any profit. Take your money and run before they take it from you; be smart and safe instead of sorry. Always take some portion of your profit out of your trading account and put it in your savings account. Every time you make a trade put no less than $20 in your savings account, the more the better. If you can't put it in your savings account then you shouldn't be trading IMHO. Always save for the future, make sure the money will be there when you need it. :)
Tell your wife that I'm proud of you and your due diligence and concern for your money and your family.
Best of trades to you.
Best always to you and yours.
Bob
