Options Beginners Mistakes

F&O
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Hello Traders

After loosing 18 lakhs in options trading in the last 3 years.Please consider below points & mistakes i have done while trading

  1. What ever kindle books, articles, zerodha varsity videos & Blogs you study about trading there is still so much to learn about the market and psychology of the market.

  2. Never never trade naked options without proper risk management, mostly beginners who has less capital. Always take the hedge for call/sell option if buying options.

  3. Never ever do revenge trading…Markets always open tomorrow.

  4. Never leave your full time job for trading. Have consistent profits for atleast 2 years and minimum 2 years all expenses covered (If planning to resign)

  5. Never borrow any loans or take personal loans for trading.

  6. Markets tests your patience lot of time and for computer screen monitoring if you are not in the algo’s

  7. Open interest, FIi/Dii positions works only for some extent it’s not a holy grail. Trust price action and volumes

  8. For beginners I recommend straddle, strangle and iron condor and have proper risk reward.

  9. For options seller everyone says theta is your friend, I would say Delta is option seller best friend than theta (option price it goes like elevator where it stops at every floor but falls like a blink of an eye)

  10. Never expect consistent returns in the markets

Happy Trading and Happy learning :grin::balloon:

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Thanks! These advises help traders staying aware about the riskiness of markets.

Fellow traders, Always keep in mind everytime while taking trade, this is not your last trade nor should you allow it to become last, trades are opportunities if one fails you have many other, don’t become mad just if one trade not goes your way! :+1:

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Like the great RJ would say " Options me lene Wale ka jeb Khali, Dene Wale ka tijori khali " English: You buy option you lose your entire pocket money, you sell options you lose your entire savings money

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