Folks,I will like to share another common mistake that most of my newbies students made before I correct them. I will like to link this with options because most newbies assume options will make them super rich. Yes they are right. if you properly know how to play with options, then just playing around with one single volatile stock will give you good green. However, little knowledge is dangerous.
I will like to use $NIO Inc.
as an example. Many people were assuming that it will go to 60$ after the rally of 45. I have been always saying that NIo is gold for a long run however if you are playing short run options or trading, then you should know that people will lock their profits, and short sellers will become active once there is a good massive green run for couple of days.
People who hold NIO calls assuming it will go up tomorrow and so on will regret because no stock will go up at the same level once it have a massive sell off. It will take about more than a week to weeks to go back to $54 again.
However the time decay will keep on crushing the option premium every single day. If it will not make a massive move then IV will keep on decaying the premium as well. Meaning you are losing money either way. Why dont you make it simple? Why dont you just trade and lock your profits if you end green, and close your options if you feel that the stock gonna fall all day? Why you come on comments and flight that NIO will go up again in a same day while the chart clearly says that it will not go anyway in the same day?
This is just an example. As I said little knowledge is dangerous but little knowledge with arrogance is even more worst. So, make it simple. Dont trade much. You dont need to have a big account to grow your portfolio. if you feel comfortable day trading, then only trade three times a week. Learn to know when the stock is high and when its low. The ultimate goal is to buy low and sell high, and that's what those all indicators indicates right? Dont have FOMO and dont try to catch a falling knife (bleeding stock) or a running train (to the moon stock). Just wait, relax, and go when the stock is relaxed. You are more likely to stay green if you will simply focus in these simple strategies. Trading is not complicated. It's actually you who is making it complicated by mixing your emotions and arrogance.
Let's go team profit 🤑🚀🙏. We all can go green if we become calm and trade stocks like our business.$TESLA $Apple $SPDR® S&P 500 ETF Trust $Workhorse Group $SUNDIAL GROWERS INC. $VAXART $Amazon.com $Microsoft $Moderna #Options Trading #Options trading Strategies #My Trading Strategies #Stock Selection Strategy #Stocks Trading Strategies #profitguru #Free Nasdaq TotalView #See trendings on Webull
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