Pressing the Big Button
Every now and then, that ideal trade comes along and you just can’t shake the urge to go big.
Now most of the time, I size my positions pretty consistently, only varying them when either (1) the market necessitates it, or (2) my recent performance necessitates it. But occasionally, I will see a culmination of several factors which leave me with that urge to “press the big button.”
Usually for me, this is an index-based trade done via ETF’s (like QQQQ, SPY, or IWM). That is by design, because I don’t want to jump out there with too much exposure to one particular name. Laying down the big trade in an ETF will greatly reduce and limit my gap risk, which is something that’s critical to do in order to manage risk.
Of course, there are times when going big is Read more »







