Iron Condor - Oh Man, I Want My Mommy…
The iron condor is one of the most popular option strategies available to traders. Unfortunately, it is also possibly the most dangerous.
The problem is that way too many new option traders slap down significant money and start trading iron condors immediately upon discovering them without first equiping themselves with the proper knowledge and skills needed to trade them properly. They are so captivated by the stories and claims of ten percent months and 90 percent probabilities that somehow they don’t stop to think about what they are going to do if their trade doesn’t go exactly as planned.
And unfortunately what always seems to happen to a high percentage of them is that they promptly wind up getting their trading accounts demolished and their heads handed to them on a platter.
Now stop - wait - hold on just a second.
Before you start to get the wrong impression, please, let me clarify something here.
I absolutely LOVE iron condors. ALOT. In fact, the iron condor is right up there as one of my favorite trading strategies.
I think the iron condor really IS a great trade.
And all those stories and claims about making 5 to 10 percent a month while barely spending any time looking at market - and how the odds are so unfairly on the side of the iron condor trader - and how trading iron condors is just like becoming the ‘house’ instead of the gambler - yes - I believe all those claims and stories too. In fact, not only do I believe those stories - I KNOW they are true - because I experience it myself first hand on a regular basis.
The big problem is that there is some very important information being left out of those iron condor claims and stories. Information that I’m sure would keep alot of rookie option traders - who frankly just don’t know any better - from blindly making that ‘over-confident’ leap into the iron condor abyss.
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 my dear old mammy used to say: ‘that smells a lot like an awful bad egg’. Which in fact it is. That risk to reward ratio is nothing but a low down, no good, smelly rotten deal!
Even with the ten percent monthly returns and the high probabilities - all that needs to happen is for a problem month to come along (and it WILL, believe me) - and the next thing you know you’ll be staring at a gigantic loss and a zero balance account!
Nevertheless…
All isn’t lost. There IS 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 there absolutely is.
It all has to do with the management of the trade.
As soon as you discover the ‘right way’ to place these trades initially - and then how to properly go about managing and adjusting them - that risk to reward dilemma instantly vanishes and goes away.
Once you possess the correct iron condor knowledge and know how - and understand how to apply a couple super easy to implement adjustment tricks - you’ll know exactly how to exterminate any problematic market threat that comes your way, allowing you to experience the iron condor trading strategy for all that it’s ‘actually’ cracked up to be.
To learn how to properly trade the Iron Condor Strategy for consistent monthly income, go to this Iron Condor Adjustments website and watch our Free Video and get our Free Report.
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