tasty Extras - March 17, 2021 - The Trap of The Gambler's Fallacy

published 4 weeks ago by tastytrade, Inc.

The gambler’s fallacy can hurt short premium traders when we over-allocate our portfolio for the volatility environment we are in.  To avoid being over-allocated at the wrong time, follow sizing mechanics even if you have been winning significantly more than losing. This is easier said than done, and is one of the hardest things to master as a trader.

more episodes from The tastytrade network