Once again the drama ensues. If you’ve been on social media at all in the past few weeks I’m sure you have heard about multiplatinum R&B artist Usher’s recent debacle.
A few women that were involved with the pop star have come forward claiming he allegedly gave them an STD after being with him unprotected.
The thought that a four-dollar condom could’ve saved the pop star from a 20 million-dollar law suit is a bit disappointing. Sex is all good when you are protected but it can be life shattering if you are out here being reckless. I personally don’t see anything wrong with a little bump N grind, just don’t go raw!
Believe it or not when you are trading you should play by the same rules. Fortunately, there are no STD’s to catch in the stock market. However, the burn from blowing up an account could be equivalently devastating. If you trade with protection, then you don’t have to worry about blowing your life savings. If you trade without protection, then you are asking to get burned.
Some traders may argue me down that no protection is not that bad. You will find that there are those that don’t like protection because sometimes that will limit your max profit. You can make a lot more money by going raw and don’t get me wrong the feel of that could be great! But we all know one time with the wrong person can literally kill you. In the same way that one time the market moves against your position you will become burnt toast.
In the stock market world, we call trading without protection “going naked”. This is equivalent to what the streets call “raw dog”. The fastest way to contracting a STD is going at it “raw dog” just as “going naked” is the fastest way to blowing your account.
An example of “Going Naked” would be selling a call option. If you believe a stock price is going to go down this is one of the many strategies you could use. Don’t get me wrong, the reward could be attractive but the risk has unlimited max loss potential!
You could lose everything you have plus more if you participate in naked trades. Going naked is off limits for my beginner traders because I don’t want you to catch an L that you can’t shake off.
So how exactly should you protect yourself? I’m glad you asked.
Here are a few smart trading practices that will prevent you from getting burned.
- Execute risk defined strategies like spreads, iron condors, & butterflies
- Place stop-loss orders on your stock trades
- Have a risk management process or the WSJB Trading Journal
- Buy Puts to hedge your falling stocks
- Don’t blind follow any gurus
Practice smart trading like safe sex so that you don’t have to worry about hating your life. Until next time Wallstreet Jackboyz and girlz stay safe and happy trading!