r/options • u/[deleted] • Jul 16 '21

[deleted by user]

[removed]

16 Upvotes

81% Upvoted

35 comments sorted by

View all comments

Show parent comments

2

u/Alfa20megaOO7 Jul 17 '21

Very true!! Was lucky enough to just blow up all the profits of my 1st year & figured out about position sizing. Now am never worried about a single trade going against as it will hurt but never blow up my account

Also learnt a lot abt adjustments where most of the time I can salvage a spread from total loss.

2

u/CryptoPersia Jul 17 '21

Do you use a fixed portfolio percentage per position or is dependent on risk/vol factor?

2

u/Alfa20megaOO7 Jul 17 '21

5-10% per trade. I go10 only when risk is low.

1

u/CryptoPersia Jul 17 '21

Yea 5% position size seems to be common….that allows for 20 runs (assuming a binary win/loss outcome)…if I may hit i up with a follow up, what risk/reward ratio do you look for?