5 Options Trading Mistakes To Avoid

You must have heard that trading in the options market can help you make a lot of money when the stock goes down or up.

But what if one of your options strategies goes wrong, you may incur a large amount of losses too.So you must have a plan before jumping into options trading.

The goal of this video is to create awareness regarding some of the most common options trading mistakes in order to help options traders make more informed decisions.

The first and the common mistake by the option traders is diving into trading without having any exit plan.

You should have an exit plan, period. Even when things are going your way. Choose an upside exit point, a downside exit point, and your timeframes for each exit well in advanced.

Second common mistake done by the option traders is Buying Out-of-the-Money (OTM) Call Options.

Buying OTM calls outright is one of the hardest ways to make money consistently in option trading.
Consider selling an OTM call option on a stock that you already own as your first strategy.

Another mistake done by the option traders are Trading Illiquid Options.
Liquidity is all about how quickly a trader can buy or sell something without causing a significant price movement. A liquid market is one with ready, active buyers and sellers always.

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[premmayannavar]

Before I didnt know about stock market, I always think margin is just like a bankers or investers money. I think intraday traders borrowing money from investors through brokers . some big investors are giving money for trade to intraday traders, they need interests of some money or percentage on theirs invesed money that's it, this is before I think about what is margin. After our trade executes some cuttings amount will goes to investers who are giving a opportunity to trade as big amount for intraday trader's. But actually brokers playing different game.
But now sebi is blocking intraday traders to trade on margin Category. But now I will suggest for new investors you can play a big game as per margin rules. .
I suggest for investors you can spend money on intraday traders through brokers. You can get a some percentage of money you will get. Traders also happy investors also happy.

[rupeshkanojiya]

You are the god for teaching a student 🙏

[shaileshkavitkar]

Sir options price up or down kis price ke bharose hoti hai INDEX Chart or FUTURE Chart

[priyadarshanmacwan]

I use moving average for options trading

[the_OG_]

What is OTM please can anyone explain?

[saifkhan]

Sir broker ki technical glitch ki wajah se loss hua kisi ko toh kiski responsibility,

[song]

Sir, is fno play app genuine for f&o

[Arindam_Haldar]

Retail trader ab sirf option buy k alawa kuch nehi kar sakta... Future mai kam v nehi kar sakte na option writing kar sakte..

[raunaksingh]

Bhai F&O me daba ke Margin milta hai mere ek ristedaar hai unka capital hi 4L ka tha or unho ne Put options buy kiya o v 96L rupees ka Margin leke. Lagbhag 3-4 lakhs share bana ab wo aadmi darr ke sell kiya only 1 Rupees loss hone pr uska pura capital gaya. Mera to capital hi 30K hai to mai F&O karta hi nahi hu..

[vandanadede]

Sir how can we make noice... means many people dont know about our campaign...

[dailyviews]

SEBI fir se Margin dene ki sambhavana hai ?

[onlinesteno]

sir ye apki video k pichee kon log hai...jo work krte rahte..

[montyvats]

Sorry to interrupt don't go fo small profit make a big one always

[blueocean]

Accha hua margin kam hogaya log jyada din tak trading kar sakenge apna capital udayenge nahi

[virbinarytrader]

Sir muze kuchh apse pucha na hai apka mobile no