This is a FullyInformed Members strategy article that delves deeper into the use of the Bollinger Bands Strategy Trade. When a stock is bought for a bounce or move higher there are a number of clues worth observing that can advise whether the trade may not end successfully. These clues are well worth following and considering before purchasing shares based on the Bollinger Bands Strategy Trade.
But there are also other combinations that can be applied to try to protect the Bollinger Bands Strategy Trade against losses and control risk to capital. Losses are the most difficult part of investing. Learning how to combine strategies to protect against loss is paramount to consistent profitable returns and it is consistency of winning trades that can grow a portfolio quickly.
Combining Put Selling
When a Bollinger Bands Strategy Trade is put in place, the returns can be excellent. Do enough of these types of trades in a year and your portfolio can quickly mushroom. But take enough losses and your portfolio’s growth can be stunted.
Through carefully combining Put Selling to stock ownership through the Bollinger Bands Strategy Trade an investor can quickly see the power of using options with stock in building profit potentials into every trade.
By working your portfolio to keep the majority of trades profitable an investor learns how to protect their trade and their portfolio from losses.
Stock and Option Combination Strategy Article
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Recommended Related Links:
Understanding The Bollinger Bands Strategy Trade