In options trading, when
you find a strategy that works or a particular stock that is doing well for
you, it is easy to want to jump right in with both feet and everything that you
have. Doing this however, can result in major option trading losses and you need to be really careful if you are thinking about
doing this. Seasoned options traders know that you never put everything you
have into any one option. Diversity is the key to reducing your risk when
trading and giving you a better chance to make a profit rather than large
losses. Because option trading can be quite volatile, you never want to put too
much into one area because things can change incredibly quickly so that
something which might have been trending favorably for quite some time, can suddenly
take a dive and if you are not watching, you run the risk of losing everything
that you have....
