How to manage a small portfolio
This is the continuation of the portfolio started in our How to trade options series, where we start a portfolio from scratch. We started a $5,000 account and added 4 different trades. I closed 2 of those yesterday, open 2 new ones and defended one that was tested.
The first management was closing trades with 3 weeks from the expiration date to reduce risk. We closed trades on QQQ and on XLU .
Then we look for new trades and explained in the video how I chose the new trades and how to manage them.
Also explained the impact of commissions when trading with a small account vs a bigger account and lastly we defended a trade that is going against us.
Watch the video explanation for details: