Tips On Avoiding Losses When Using IWM ETF with the Trading For Pennies Strategy

When using the Trading for Pennies Strategy with the IWM ETF the goal is to earn 6 cents or more, but it is easy to quickly end up with losses. When you have bought 50 to 100 options, even a 10 cent loss means losing capital. 10 cents on 100 contracts in IWM ETF Options is $1000.00. If for example you have been trading for 5 cent gains in the Russell 2000 ETF, just one loss of 10 cents wipes out 2 gains. Eventually by continually taking losses an investor will begin to wonder if the effort is worth the work. For example if during the month I traded for 20 days and on 15 days I made 5 cents on two trades, this would amount to $15,000 earned on 100 option contracts. If on the other 5 days I lost 10 cents on 100 option contracts my total losses would be $10,000.00. At month’s end I have made $5000. I would begin to wonder if there is much point in trading this strategy on the Russell 2000 IWM ETF as the continual losses will wipe out enough of my gains that I would be better off trading with a different strategy which may require less work and have fewer losses.

This is an ongoing series of articles that looks at improving the knowledge of FullyInformed Members in how to attempt to apply the Trading For Pennies Strategy against the IWM ETF for consistent winning trades.

IWM ETF Trading For Pennies Strategy Article

This FullyInformed Members Strategy Article can be directly accessed through this link or Members can login here. Non-members can join here. This article is 7 pages in length with 2100 words.

Trading For Pennies Strategy With IWM ETF Links For Members

The Trading For Pennies Index Page (A Great Place To Start Understanding This Strategy)

The Trading For Pennies Strategy Explained (Learn the Strategy Here)

Different Trading Platform Settings

Trading For Pennies Trade Alerts (trade alerts as they happened)

Trading For Pennies Strategy Trades For 2013

Trading For Pennies Strategy Trades For 2012