Losing Money Trading Options? 2 Common Mistakes to Avoid

Losing Money Trading Options? 2 Common Mistakes to Avoid

My Option Trading eBook

Chapters
0:00 Intro
0:48 Trading mistake #1 What is Overtrading and why do traders do it?
3:05 What is a good Profit goal for a new trader?
3:20 How much should you risk on each trade?
4:05 Trading mistake #2 Only Buying options instead of Selling
4:56 Example of why Selling options is usually better than Buying options

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In this video, I share 2 common mistakes option traders MUST avoid to be successful.

Happy investing!
Randy Perez

#wealthmanagement #retirementincome #optionsforbeginners

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Disclaimer: I am not a financial planner and am not offering investment advice. This is an opinion channel only and should not be taken as any form of financial advice. The ideas and strategies that I discuss should never be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. There are financial risks involved in taking on any monetary transaction that I discuss in my videos. I may receive a small commission from the purchase of any item from using the links listed above.

[bartman]

The most important lesson I've learned is to always be patient.

[jakewhite]

My biggest mistake, reacting too quickly when a position goes against me and there is plenty of time left in the contract. Roll an option out and up for a loss only to have the stock price correct (drop) and go OTM

[federosso]

Hi Randy, in my case it’s clearly position sizing. Trade small but trade often is my goal going forward

[DS-uqhb]

Thanks for your content Randy, always useful! Option selling will be an income stream in retirement so I'm paper trading now. Practice practice practice!

[bfine]

Great video. Excellent topic and perspective. Thanks Randy.

[johnjackson]

Biggest mistake was buying LEAP calls in growth stocks. So far this year I've lost everything I made last year doing the same thing. Now I'm selling premium and using the proceeds to buy dividend stocks. Feels more sustainable.

[theeverydailyshow]

Hey Randy, I think you said you'd be reposting some classic videos? Was this one of them? I seem to remember you mentioning that baseball analogy before. I also think you're a 24 year veteran now!

I agree on the over trading notion. Earning a 30% annualized return on a trade, then trying to eek out another 5% on that same trade can often times ruin your chances for a 30% annualized return the next year. That extra 5% allowed the stock to go against you and now you're digging yourself out of a hole.

[getsugatenshoFTW]

Looks like a re-upload from 2020. Still valuable information!

[dfghdh]

I think my biggest mistake (which actually wasn't a real big mistake because I was smart enough to not trade too large) was buying puts in a small start up company with negative EPS. Still trying to turn that trade around a month later. All other puts I've sold turned out great. I took your advice and sold puts in large, quality, dividend paying stocks I wouldn't mind owning. Only been trading a couple months but with the exception of that one small company trade, all the other trades made me a nice profit.

[rufuseverette]

AAPL @ $500/share??? Last time I checked AAPL was around $150/share. What am I missing, Randy?

[baldlebowski]

Love it brother. I wish I had this video 5 years ago when I first started. I had to learn the hard way and pay my dues. But that's life. Again thanks brother as always 🍷😉

[miguelvieira]

Thank Randy you are so great, I am from Venezuela could you give us from Latin people some videos in Spanish? Specific videos of course 😊

[steve]

My biggest mistake was selling naked puts during earnings. Use spreads to avoid the 100 point down day that happened on DOCU a while ago

[williamdieffenbach]

I would be happy to have a batting average of a pitcher.

[michaelmickle]

Excellent advice Randy! I’m with you an Option Seller!! Powerful Strategy Selling Premium. I always look forward to your videos which reminds me how selling options is more beneficial than an options buyer over time.

[brendanquinn]

I cant find when ale ever traded at $479 dollars. It is around $150 at the moment.

[richardthorne]

Great video and content. Most people that want to be premium sellers just don’t have enough capital yet…so better saving and investing to meet the necessary capital requirements. I would say at a minimum you would need $30K. But in reality you would need way more than that to really make significant income. It just takes a while to build up a nest egg but once you find options it’s a game changer.

[Bubs]

More videos like this. More psychology.

[dfghdh]

Uh oh Randy got so busy trading options he didn't have time to shave lol.

[kape]

Haven't I already watched this video?