The Worst Mistake Beginner Options Traders Make

#optionstrading #optionsstrategy #tradingmistakes

[flynnrichard]

I do believe a major issue common is the misconception of it being a gamble or casino game, I only got remunerative after understanding the need for pro aid.

[jamessoriano]

I think this is one of the best SMB videos I've seen. It's about a trader's psychology, the emotional growth (or lack of it) that comes with experience. I've been trading naked puts for about two years. I accept assignments, which have been rare, and save but two assignments, I've been able to get out of them and into cash again within a few weeks. Modest lot size and low deltas. So far it's all been profitable, low profits, but profits, and if a seasoned trader reviewed my work, he'd say I'm too conservative, -- go for a higher delta, increase lot size. Maybe. Some day. I don't feel ready for that. It's an emotional growth thing, which is why I liked this video.

[glennjsoucy]

Don't increase your lot size until your first loss. Fantastic advice!!! Thank you!

[jiaoyizhidao]

Love to see these Options Traders mistake videos

[supanova]

@16:03 you’ve never met a trader that can recover from oversizing and undoing months of gains?!?
Seth my brother…you haven’t met me lol!! I’ve done that a few times over the last 4 yrs and I’m still at it. Obviously learned my lesson and paid my tuition but I’m still kicking.

[matthews]

I used to play poker and i was a winning player, grinding really good money in the lower stakes. I then climbed the stakes too quickly. While the big wins were fantastic, I eventually ran into a loss from a single hand that made me quit poker for good.


I see a lot of similarities in this story and it will serve as a reminder as I get into options trading.

[hdbmj]

i was about to increase my lot sizes and this video came up. thank you so much.

[coreycorey]

It would be great to have a follow up video discussing how to manage the loosing trades to optimize the overall results. Thanks for another great video.

[ThaiGuy]

… This might seem like a dumb question, but I’m pretty new at this: is the 50 points span between the short and long positions Standard in an iron condor? I realize that if you shorten this span, your cash flow would be less due to the higher premiums on the Long positions… Is there another reason for choosing that particular separation??

[blufordbirdsong]

This is a great video. Every trader I know makes this mistake, myself included. Size is king. I had to learn the hard way, but now effectively manage my size. I like your tips about risk as a muscle and only increasing size after taking a loss at the current size level.

[LMF-ctlt]

Great Video Seth.
Do you typically hold until expiration or close early?

[ossentoo]

Fantastic advice. I got cocky, but fortunately just experienced a small loss and hadn’t yet 10x my size. Thanks Seth.

[aim-for-greatnz]

I live in NYC and I WISH I could be part of a group like this!!!

[williamy]

Thank you Seth for the wonderful coaching tip. (please let him know this video helped a lot.)

[AtmanGoldenAge]

Thx Seth. But what about actively managing your 10x lot strategy as you know. By rolling the position or setting up alarms when the index comes near you short strike and exit with lesser loss. But agreed that the sizing up needs to be more gradual. Question: do you recommend using stop loss on these positions? Cheers

[nicerides]

As someone who has been a gambler for decades I already knew what would happen when he increased his stakes. It's uncanny how many times a winning streak ends just as you decide to up your stake. It's like the gambling gods are tormenting you for being greedy.

[cristianegro]

How can some test that on. Paper accout

[bradmeltonrealtor]

Thank you guys so much for doing these videos. It’s really lonely trying to learn trading on your own, this channel is an amazing resource!

[kelvinpanko]

I did something very similar to this, I didn't quit trading options but I did quit trading 10 deltas. It was tough mentally!

[Relaxation-Study-Mediation]

The option prices in the presentation are often incorrect, there is no quality checking! I have noticed the same in a few SMB vids