Position sizing is an important aspect of risk tolerance and diversification. It could be the most important aspect of any options portfolio. No one likes to discuss losses but they are inevitable and you must be well-equipped when the time comes. Here are a few must-read articles to help you along the way. Click around and I am sure you be pleased with what you learn. Pass it along!
- Position Sizing A must read! Trader Mike offers a resourceful and well-written article on one of the most important aspects of any trading system.
- – Another wonderful and insightful article.
Today the market consolidated after Friday’s big surge. It seems we could be in for a fairly tight range until Wednesday’s Fed meeting at 2:15.
RSI Wilder (5) for May 8, 2006
- SPY – 69.0 (Neutral)
- DIA – 83.6 (Very Overbought)
- QQQQ – 65.6 (Neutral)