Don’ts :–
- Don’t invest more than you can afford to lose: Options trading can be high-risk and volatile, so make sure you only invest money that you can afford to lose.
- Don’t ignore market trends and news: Stay up-to-date with market trends and news that may affect the underlying asset and your options trades.
- Don’t hold onto losing trades: If a trade is not performing as expected, cut your losses and move on to the next trade.
- Don’t chase returns: Avoid making impulsive trades based on short-term market trends or the desire to make quick profits.
- Don’t overlook transaction costs: Option trading often involves transaction costs such as commissions and bid-ask spreads, which can impact your overall returns.
- Don’t rely on luck or intuition: Successful options trading requires a solid understanding of the market and disciplined execution of your trading plan.
- By following these dos and don’ts, you can minimize risk and increase your chances of success in options trading.