Trading without stop loss using options

Trades without stops will occasionaly lose very heavily , the losses from this type of trading will wipe out several months of profits.Placing stops is a double edged sword , stops are hit either when bucket shops /spreadbetting brokers look for stops or when markets become extremly volatile.Using stops can result in stops getting taken out , and then to make things worse, the price goes without you.


Using a weekly or monthly put option for a long trade or a call option for a short position , is an alternative .There is the cost of the options to be deducted from profits , but this cost gives the holding power to hold on to your trade , for almost a week or month.

As an example
weekly dax put long cost 34 strike 12400
long cash dax 12463

See image


You need a lot a patience ,to wait for the trade and to run your profits.

Read following to experience and understand stops and chaos.

http://ift.tt/2pAQwPH

http://ift.tt/2pAP3ZS

http://ift.tt/2pAP4wU

http://ift.tt/2pAHvGn

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Trading without stop loss using options