Iron Condor Trading
Iron condor trading can be somewhat challenging for us option traders simply because we are only given a limited amount of times to ‘play’ every year.
These trades are monthly income trades – we put them on ONCE every month. For many – myself included – that’s the beauty of these trades. I only have to worry about one trade per month – and it’s a low maintenance trade with high probabilities that usually only throws us a curveball one or two times per year.
That is what is so great about these trades.
It’s also what makes these trades so challenging.
Let me explain.
A couple years ago decided to learn forex trading. I had no knowledge of forex what so ever going into it – I just saw everyone else around talking about it like it was the next big thing so I decided to jump in, see what it was all about, and if it might be something for me.
However, the way I approach anything similar is to totally immerse myself in it – run as many tests as possible – as quickly as possible – so I don’t waste a bunch of time that ultimately doesn’t turn out to work for me.
So with this forex example, I purchased the best course I could find and dove in. Then, after going through it a couple times, I immediately began paper trading the system that was taught in the course – using real time data – from about 6am to 1pm every day.
And luckily for me, the system that was taught in the course included a 30 minute time frame system as well as a 60 minute time trade system. By the end of two weeks trading this system every day – I had enough ‘real life data’ to help me determine if the system actually worked – as well if it was a way of trading that was in align with me.
The thing with iron condors is that these also should be approached and ‘tested’ in the same way – the only thing is – there are only 12 times through out the year to place them – and for most of those months there will be very little if anything to actually do other than just let the trade run and collect your money.
Usually there are a couple months when things can get hairy with iron condors – forcing a trader to make adjustments – which means – there are actually only a couple times per year for a new iron condor trader to actually get any real ‘experience’ trading – and I imagine most traders might not have the patience for that.
