Don’ts :–
- Educate yourself: Before trading options, make sure you have a solid understanding of the underlying asset, option pricing, and option trading strategies.
- Start small: If you are new to options trading, start with small trades to gain experience and confidence.
- Use stop-loss orders: Stop-loss orders can help limit losses if the trade moves against you.
- Have a trading plan: Develop a clear trading plan that includes your goals, risk management strategies, and exit points.
- Stay disciplined: Stick to your trading plan and avoid making emotional decisions based on fear or greed.
- Practice risk management: Use risk management strategies such as diversification and position sizing to manage your overall risk exposure.