Using Stop Losses
I hate "stop-loss" orders - and you will too. Once and for all we'll completely put to rest our case as to why using stop-losses actually creates more losing trades with risk defined strategies. And it's not something that you can argue because it's based purely on the math and probabilities. But when it comes to trading undefined or naked option strategies there is one type of stop-loss order that "might" possibly help reduce your risk slightly over long periods of time. Even if you don't use this one particular stop-loss order you'll still be fine and have a very low likelihood of blowing up your account and losing all your money as long as you keep your position sizes small.