by Ted Nino
The <a href="http://www.ironcondoroptiontradingstrategy.com">iron condor</a> is one of the most popular option strategies available to traders. Unfortunately, it is also possibly the most dangerous.
The problem is that way too many new option traders slap down significant money and start trading iron condors immediately upon discovering them without first equiping themselves with the proper knowledge and skills needed to trade them properly. They are so captivated by the stories and claims of ten percent months and 90 percent probabilities that somehow they don't stop to think about what they are going to do if their trade doesn't go exactly as planned.
And usually what winds up happening is that the market promptly snaps off their arms and legs, smacks them across the face with a two by four, then starts to jab them repeatedly in the eyes. In other words - they wind up getting really hurt.
Now stop.
Before you start to get the wrong impression, please, let me clarify something here.
I absolutely LOVE iron condors. ALOT. In fact, the iron condor is right up there as one of my favorite trading strategies.
I think the iron condor really IS a great trade.
And yes, I absolutely believe all those stories and claims you hear swirling around about iron condors generating ten percent plus monthly returns and providing trades that have the probability of winning somewhere in the range of eighty to ninety percent. In fact, I KNOW those stories are true because I see it happen all the time in my very own trading account.
Here is the problem: All those fresh, green and excited new option traders have no idea what they don't know. This trading options for income thing is like an alien planet - with a whole new set of rules inside a brand new reality. And when the person who has introduced them to this new way of trading just tells them about the good but forgets to tell them about the bad - they wind up jumping in with way too much confidence, misunderstanding, and expectations that are completely wrong.
See what isn't being talked about with iron condors is that while yes, they can provide great monthly returns and high probabilities of winning- they also come attached with a horrendous risk to reward ratio - sometimes as poor as 10 to 1!
This means that in order to achieve those 80 to 90 percent probability trades - you need to risk ten dollars to make just one - or to be more realistic - you need to put at risk $10,000.00 for the chance to make just $1,000.00.
And as mammy used to say to us kids - 'that ain't nothin but a real awful bad egg'.
Just do the math. With a risk to reward like that, even with the great probabilities and wonderful monthly returns - before long a problem month could come along and completely wipe out your entire account!
Nevertheless...
All isn't lost. There IS hope...
Like I said before, I LOVE the iron condor trade.
It's one of my favorite trades - and it continually generates profits for me.
So apparently, even with that atrocious risk to reward quandary, there must be a method to generate consistent income with this trade.
And there is.
It's all in how you manage the trade.
As long as you learn the correct way to initially place these trades, then combine that with a super simple management technique and a few easy adjustment tricks - this risk to reward issue can be completely eliminated and no longer presents a problem.
You just need to take the time BEFORE jumping into the <a href="http://www.youtube.com/watch?v=8j7JdysThY8">iron condor</a> pool to equip yourself with this little bit of knowledge. A few simple 'tricks of the trade' - so when those problem months DO come along (and they WILL believe me) - you will know exactly what you need to do to immediately squash that threat, easily adjust yourself out of the problem, and experience the iron condor for all it's 'really' cracked up to be.
To learn how to properly trade the <a href="http://www.ironcondoroptiontradingstrategy.com">Iron Condor</a> Strategy for consistent monthly income, go to this <a href="http://www.youtube.com/watch?v=8j7JdysThY8">Iron Condor</a> website and watch our Free Video and get our Free Report.
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New Unique Article!
Title: Iron Condor - Oh Man, I Want My Mommy...
Author: Ted Nino
Email: theeinfoco@gmail.com
Keywords: iron condor,option trading,stock trading,stock,trading,forex trading,forex,currency trading,stock market,investing,investment,finance,personal finance,wealth building,business
Word Count: 688
Category: forex
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