I just came across a post (hat tip: strait73) by Jared at CondorOptions that describes the risks associated with trading options so well, that I must share it immediately.
This reaffirms my message, but it makes it even more easy to understand.
- Risk management is the key to success
- Proper sizing is a major part of risk management
- It's not the spread type that determines your success
- A good risk manager utilizes several spread types