In my personal account I trade quite a bit differently than most people. I control risk with options. The vast majority of retail traders trade leverage to try and get rich quick. The problem is they bet too big and the first time they have a losing trade they blow up their account. Instead of getting rich quick, they get poor quick.
That is NOT the way to trade leverage.
The first rule of trading leverage: DON’T BET MORE THAN YOU ARE WILLING TO LOSE
The second rule of trading leverage: See rule #1.
Trying to hit a home run with your entire portfolio is a quick ticket to the poor house.
The correct way to trade leverage is to try and hit a home run with an initial stake that is small enough that you are willing to lose it all and are able to recapitalize and try again if you do. If you do hit a home run, or even just produce a modest winner then you press your winnings into the next trade and try to hit a home run twice. But now you are playing with the houses money. If you lose you will only be losing your initial stake which wasn’t that big to begin with. Nothing that was going to damage you financially (at some point you should take your initial stake out and play purely with house money). You start small and try to build big profits with a series of winning trades. You never bet it all on one trade. Sooner or later everyone will miss a trade and when you do you will lose your entire portfolio.
I recently did a webinar for subscribers and traders new to options and covered this strategy extensively. That video will be available for subscribers to purchase for the next month and I’ll give new subscribers $10 off their first months subscription. Just sign up for a monthly subscription and I’ll refund $10 back to your card (Offer good for the next week. New subscribers only). Once you are a sub you can purchase the options video if you are interested in learning how to use leverage correctly without the risk of blowing up your portfolio.
Here is the record of my October trading. I started with $12,000 and after closing my latest trade the account is now over $110,000. If we are starting the final parabolic melt-up phase of this bull market then now is the time to learn how to use leverage correctly as a lot of money can be made quickly during the final phase of a bubble.