How much money should I allocate to a position?
I just finished an article for the Montreal Exchange. While I encourage everyone to visit OptionMatters.ca for all of the insightful blog contributions, I thought I would share the content with our Learn To Trade Global readers in case you don't make it over to the M-X blog spot.
We pay a monthly premium to insure many important things in our life. Day to day, we take comfort in the fact that if something should happen, things that are important to us are protected from unforeseen misfortune. Why then do so many investors fail to buy stock insurance?