The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again at optionalpha.com and welcome back to the daily call. On today’s daily call, we are going to answer the question – “Can one big losing options trade wipe out your account?” The short answer to this is maybe. I’ll say this real quick before you exit the podcast and stop listening. It’s that it definitely, 100% is determined upon your trade size. I would say if you’re listening to what we do and we say 1% to 5% of risk per trade, then one big losing trade should never wipe out your account, really never wipe out your account. Now, I’ve seen a lot of people where they have had their accounts totally wiped out and guess what? They should, frankly speaking. I’m speaking to you if you’ve had these big trades and you know that they’ve been big trades and you got greedy and you know you got greedy. Don’t lie to me and tell me that you didn’t know it was going to happen, that you assumed it wouldn’t happen. That’s like taking all of your wealth and buying lottery tickets and assu