Let us start talking about Markets in general. No one can predict what happens tomorrow. Either Bulls win or Bears. Any trader with a good system can predict a high probability move and if successful, these moves can exceed expectations. when predictions go wrong, result is either breakeven or loss. coming to our concept, why not limit this loss while still playing high probability trades.
we all agree that every year is not 2020. But let us see some examples below how fixed investments worked.
- TLRY Jan 2023 22c entry Jan 7 2021 exit Feb 10 2021 4.5 to 40. 1000 dollars in this bet resulted in 8000
- XOP Jan 2022 95c entry Nov 2020 exit March 2021 2.4 to 10. 1000 dollars in this bet resulted in 4000
- DIS Jan2022 190c entry 03/11/2020 exit dec 2020 2 to 20. 1000 dollars in this bet resulted in 10000
- GM jan 2022 55c entry06/30/2020 exit jan 2021 0.3 to 9. 1000 dollars in this bet resulted in 29700
We have many such like BAC, AMD etc. I do not want to bring GME or AMC or Doge now. you will be amazed what a 1000 dollars can do. If the bet loses you will either lose half or full 1000 dollars. There is no escape from losses but trusting the process is key. some thousands can result in good multiples which will cover some bad trades.
Like I mentioned above, not every year is 2020 but strong trends create huge opportunities. one good trade can be enough to cover few bad trades.
Disclaimer: This Post is not investment advice. All posts are my personal opinions only.