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Don't create focus on return in trades.
3/n
3/n
Do create focus on method and trading skill development
4/n
4/n
Do keep a trade journal to record trade entries, exits, adjustments and new potential trade ideas.
5/n
5/n
Don't rely on other trader's ideas, entries, exits, profit statements for your own trade confidence.
6/n
6/n
Do spend all the time you can reading, learning #OptionsPricing to develop a basic understanding of the risks that compose the edge in #OptionsTrading
7/n
7/n
Don't simply trade options like you would regular stock. Find out what else affects options pricing other than the movements of the underlying stock.
8/n
8/n
Don't get lured by massive margins and exposure offered by discount brokers
9/n
9/n
Do look for stable brokers even if it means you pay slightly more for trade execution
10/n
10/n
Do find mentors that you can access and have interests similar to yours.
11/n
11/n
Don't simply rely on attending workshops. They can be useful to lead you into a path of learning. Use them as stepping stones to a faster learning curve, but don't assume large risks coming straight off of them.
12/n
12/n
Do keep a tab and limits on the exposure you take on naked as well as risk defined short option positions.
17/n
17/n
Don't go over a notional exposure of 2, period.
18/n
18/n
Do practice #papertrading options for at least 3 months before deploying the initial 25L.
In this period, start off with 10 per day and get to putting on a minimum 50 trades per day. Enter, manage, exit each of them as per your pre-defined rules.
Aim is to develop skill.
19/n
In this period, start off with 10 per day and get to putting on a minimum 50 trades per day. Enter, manage, exit each of them as per your pre-defined rules.
Aim is to develop skill.
19/n
Don't assume that #OptionsTrading can be done easily as a part-time effort.
Part-time #OptionsTrading is possible, but involves a specific subset of strategies that can be deployed.
20/n
Part-time #OptionsTrading is possible, but involves a specific subset of strategies that can be deployed.
20/n
Do understand what types of #trading #strategies suit your own #personality.
Ask yourself this question:
Are you comfortable buying or selling when prices break all time highs?
#tradingpsychology
21/n
Ask yourself this question:
Are you comfortable buying or selling when prices break all time highs?
#tradingpsychology
21/n
Looking into trading Directional #trendfollowing strategies when you start out.
These are easier to run and can help you avoid ruin.
#trading
22/n
These are easier to run and can help you avoid ruin.
#trading
22/n
Working on #TrendFollowing strategies will also help you learn simple price action principles.
#trading
23/n
#trading
23/n
If you are starting out, work out identification of a trend, and find ways to enter IN the direction of the trend.
#trading #meanreversion with Price action principles is hard and takes a while to figure out.
#trading
24/n
#trading #meanreversion with Price action principles is hard and takes a while to figure out.
#trading
24/n
Instead of worrying about which option to buy, when faced with a trend/breakout, first buy then think.
Any strike close to the underlying price works. The option chain is a continuum directionaly and convexity works across it.
#optionstrading
25/n
Any strike close to the underlying price works. The option chain is a continuum directionaly and convexity works across it.
#optionstrading
25/n
Always look for simplifying options strategies.
Figure out how to replicate a complex structure using synthetics.
26/n
Figure out how to replicate a complex structure using synthetics.
26/n
