Why Cash is King when it Comes to Trading Stocks and Options

Why Cash is King when it Comes to Trading Stocks and Options. It may come as a surprise to some people, but a trader’s best friend is having cash on hand. Cash is king because it is a risk free trade, you can’t lose money if the market goes down in cash and by having cash available, you can make more trades. But having the security of your assets in cash can make a much better trade than one that is losing money.