Hey 5-Star Trader,
As a conservative trader, it is always my goal to focus on creating a constant stream of income for myself. I do this through the selection of trend-following and directional plays. Trading short-term, directional options strategies are aggressive in nature, so I do my best to put a conservative spin to my trading.
One way I do this is by categorizing my risk. The factors I look at can give you a good idea about how you should manage your own risk, and give you ideas for which strategies are appropriate for you.
Outlined below is a list of my strategies and a rating from least to most risky.
Every day in the market is different so it is obvious that not all of these strategies will work on any given day. Likewise, every trader has unique styles and you need to know what is right for you.
I have found that by visualizing and categorizing my risk, I’ve been able to save myself from making grave mistakes.