8 Minute Read

Tackle Today: Money Management & Portfolio Protection

August 5, 2022

By | No Comments

«Build a Moat.»

Traders,

The idea of portfolio protection is simple. Take steps that ensure you don’t blow your dough. Drawdowns are inevitable. You will see your account value dip from time to time. But the size of the slide is altogether in your control.

Here are three ways to ensure you’re not exposed to an unnecessarily large crash.

1. Position Size

Position size appropriately. Don’t risk too much in any one position and don’t have too many trades going than you can handle if they all move in the wrong direction.

2. Stop Losses

Use stop losses and have an exit strategy. There’s nothing wrong with being wrong. There is something wrong with staying wrong so long that you dig a pit that takes you years to climb out of.

3. Portfolio Protection

Buy portfolio protection via puts and put spreads. You could purchase these on individual positions or be more efficient and do it directly on an index or ETF like SPX or SPY. As you live through multiple corrections and bear markets, you’ll learn which methods you like most.


Video Of The Day: How to Use Put Options as Insurance

Coach Noah explains what a Put Option is, how to and why you should use it as insurance.


Chart of the Day: Bitcoin Futures (/BTC)

Chart of the Day: Bitcoin Futures (/BTC)

Bitcoin is oiling nicely beneath the 50-day moving average. Is an upside breakout imminent?


Options Theory Blog

The Bear Lover System

A team member pitched me an intriguing options selling system. It involves super short-term options and delta hedging. Here’s my review.


Today’s line up

Traders Lounge 11 AM EST

Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Cash Flow Club Replay

If you missed last night’s webinar with Coach Greg Holmes where he talked about In The Money Covered Calls or would like to watch it again, check it out here.

Halftime Report 12:30 PM EST

The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.


Tackle Trading: Financial Freedom is a Journey. Sign up now for a 15-day free trial.

Financial freedom is a journey

Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.


Legal Disclaimer

Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.

All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.

Chart Modal

Tackle Trading

Holiday Sale

Attention: Beginners and Advanced Traders!

The Annual Holiday Sale is here!

Celebrate the Holiday Season by taking advantage of this generous offer and save up to –60% on these awesome Trading Systems and Coaching Program!

Offer ends in

Days
Hours
Minutes
Seconds