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Devastating Results
He now owes Etrade
more than $106,000
I think there are some very
important take aways
Understand your
maximum risk before ever
placing a trade.
KBIO short stock position
only had $2 profit potential
per share.
It’s up to us as traders to understand
our maximum risk
Using stock options is great
alternative that will allow you
avoid the big risk that
shorting stock brings.
Trade with defined risk
trade types.
Unlimited RiskSmall profit potential
We know what our worst case
scenario would be before we
ever get into the trade.
No options available.
Product not in the arena of
being useful to us.
Don't mistake using a stop
loss as defining your risk.
Illiquid Stock
Bad fills
Define Your Risk Before
Trading
His bad fortune is a lesson
Shorting shares of stock
also comes with the
unlimited risk.
Like any other business,
you have to have a plan in
place for every situation.
Trading options is a great
way to be active in bullish
and bearish markets
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