All lessonsLesson 11 · Step 1/5
Risk & Paper Trading
Position sizing: the 1–2% rule
The #1 reason new options traders blow up isn't bad analysis — it's bet size.
Risk no more than 1–2% of your account on a single trade. On a $10,000 account, that's $100–$200 of premium per trade.
Options can go to zero. Sizing small means a total loss is a tuition payment, not a funeral.
Hard truth
Most bought options expire worthless. Your edge comes from survival and selectivity.
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