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Iron Condor – Owe, That’s Gonna Leave A Mark…

By Ted Nino

The Iron Condor is perhaps the most dangerous option strategy around.

See here’s the deal: when a new fresh faced option trader first hears of this trading strategy – he or she becomes so enamoured with it that they just can’t seem to help but jump right into trading them – risking way too much money – and without much thought of what they are going to do if the trade starts to go wrong.

And usually what winds up happening is that the market promptly snaps off their arms and legs, smacks them across the face with a two by four, then starts to jab them repeatedly in the eyes. In other words – they wind up getting really hurt.

Now stop.

Before you start to get the wrong impression, please, let me clarify something here.

I LOVE iron condors.

I think the iron condor really IS a great trade.

And those claims and stories of ten percent monthly gains and ninety percent probabilities? They are absolutely true.

The problem is – there is something big that is being left out of all those claims and stories – and this something is causing way too many fresh new doe eyed option traders to misunderstand this strategy right from the beginning and blindly jump into them with completely wrong expectations.

See what isn’t being talked about with iron condors is that while yes, they can provide great monthly returns and high probabilities of winning- they also come attached with a horrendous risk to reward ratio – sometimes as poor as 10 to 1!

10 to 1! That means that in order to try and make just one dollar, you need to be willing to risk ten. Or, put another way – in order to make 100 dollars, you need to risk 1,000 dollars. Or – risk $10,000.00 to hopefully make just $1,000.00!

And as mammy used to say to us kids – ‘that ain’t nothin but a real awful bad egg’.

Because once you do the math you find that even with those glorious monthly returns with 80 to 90 percent probability of winning – all it takes is just one problem month to come along and cause a loss that will completely obliterate the 8 to 9 wins you’ve managed to rack up – as well as potentially the rest of your entire account!

Nevertheless…

There is still hope…

Like I said before, I LOVE the iron condor trade.

It’s one of my favorite trades – and it continually generates profits for me.

So obviously there’s a way around that horrible risk to reward issue and the inevitable problematic losing months.

And yes, there certainly is.

It’s all in how you manage the trade.

As long as you learn the correct way to initially place these trades, then combine that with a super simple management technique and a few easy adjustment tricks – this risk to reward issue can be completely eliminated and no longer presents a problem.

You just need to arm yourself with a small amount of trading know-how. A few iron condor tricks that will allow you to quickly and easily adjust yourself out of sticky situations and smother any problem month threat that comes along, permitting you to experience the iron condor strategy for all that it’s ‘really’ cracked up to be.

To learn these ‘tricks’ to trading the Iron Condor , go to this Iron Condor site and watch my free video. It will show you an extremely simple method for properly placing, managing, and ADJUSTING iron condor trades.

categories: iron condor,option trading,stock trading,stock,trading,forex trading,forex,currency trading,stock market,investing,investment,finance,personal finance,wealth building

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Article Citation
MLA Style Citation:
Nino, Ted "Iron Condor – Owe, That’s Gonna Leave A Mark…." Iron Condor – Owe, That’s Gonna Leave A Mark…. 6 Jul. 2010. uberarticles.com. 3 Aug 2014 <http://uberarticles.com/finance/stocks-mutual-funds/iron-condor-owe-thats-gonna-leave-a-mark/>.

APA Style Citation:
Nino, T (2010, July 6). Iron Condor – Owe, That’s Gonna Leave A Mark…. Retrieved August 3, 2014, from http://uberarticles.com/finance/stocks-mutual-funds/iron-condor-owe-thats-gonna-leave-a-mark/

Chicago Style Citation:
Nino, Ted "Iron Condor – Owe, That’s Gonna Leave A Mark…" uberarticles.com. http://uberarticles.com/finance/stocks-mutual-funds/iron-condor-owe-thats-gonna-leave-a-mark/


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