Ok, here it is.

Sell an equal number of call options and put options two standard deviations away from the current price.*

Pretty simple, huh?

It works because 2 standard deviations imply that the market will only get there 10% of the time. As a result, the strategy stands to win on 90% of its trades. (This is an actual strategy that I and many have paid for!)

Is this a good strategy?

If you like winning, yes…

If you like making money, no…

The reason I decided to make this the topic of today’s article is because many people seem to confuse the number of winning trades with creating profits.

This options system is the perfect example of that. In the long run a strategy like this is only asking for trouble. Taking small options premiums while exposing yourself to unlimited risk is not a sound strategy.

Does your trading strategy employ the same logic?

If you suffer from taking quick profits to “lock in” winners while missing out on the major moves, then you should re-evaluate your plan.

If you’d like to learn more about a position trading strategy that focuses on the inverse of this strategy, checkout Market-Millions.com.

Continued Success!

Ray

* I do not recommend this as an actual trading strategy. It is only meant to demonstrate the idea of winning trades versus profit.

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