Trading options can be incredibly tricky for even the most savvy investor. However, there are some rules of the road that can help tilt the odds in the favor of the beginner options trader (by How To Trade Options 101). There are several mistakes that the typical beginner tends to make that can be easily avoided with some knowledge and care.
Have An Exit Strategy
Having a defined exit plan helps the options trader take emotion out of the equation. Human beings tend to be governed by their emotions, but the successful options trader avoids emotional pitfalls with an exit strategy. The trader should determine in advance how much profit or loss he or she is willing to accept before getting out of a given position...Read More