01/09/2021 17:02

Most common reason for losses especially trading options, I have made these mistakes myself, most of the time it wasn't the setups, but mental psychology and risk management!

1. Protect the capital first before profit, many traders want to make so much profit out of greed, but when preserving the capital is far more important!

2. Not securing profit, then letting a winning trade turn into a big loss, risk management is EXTREMELY important!

3. And, not selling this is RELEVANT to options when the whole market tanks, JUST sell, even at small loss because options have expiration, and theta decay, premium loss, etc, just sell the trade because market can keep on tanking for the next few days, and those losses will turn into bigger losses and are EXTREMELY hard to make back with options, stock has to move up exponentially high in a limited time frame to make back the losses, and averaging down isn't always the best option!

4. And, not selling the trade even at small loss when the trend has REVERSED or when stock is just trading in a range! Cut the loss quickly, focus on risk management rather! You free up the capital to trade a winning trade!

5. Opening too many trades is sure way to the poor house, many noobs forget RISK MANAGEMENT! With options, best not to open too many trades, unless you close the previous ones first! Market can turn on you anytime and eat you alive!

6. Risking too much capital, emotions plays big part when you have a lot at stake, even if the winning trade turns red temporarily, but if you are risking too much, emotions can turn a winning trade into losing one quickly!

7. Remember to lock in profit, EVEN break even is better than a loss, better to not make any profit than to lose capital! Forget "diamond hands" take your profit and go home!

Learn charts/patterns, and analysis on Instagram, all free education!

#Options Trading
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$Nikola Corporation
Disclaimer: The comments, opinions and analysis expressed herein are for informational and educational purposes only and shoulk not be considered as individual investment advice or recommendations. Webull is not responsible or liable in any way for comments posted by pur users.


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All Comments(8)

Ark808501/10/2021 14:50
Thanks for the well thought out post. Is it a bad idea to have to many option contracts open that have a expiry say a few months out to a year out?

I’m mostly bullosh with calls and thinking the answer my be to balance out wIth some long puts. Any advice is appreciated . Thanks.


MetaTron1301/10/2021 01:12
this is a really fancy chart saying "buy low and sell high..." :)


Maj***com01/10/2021 00:00


Joey Ca$h01/09/2021 19:28
Very hard scaleing this - agreed


TradingGlam01/09/2021 18:27
Follow the link on Instagram to join


elon and ye mode01/09/2021 18:24

TradingGlam201/09/2021 20:49

blocked both trolls, 🤡🤡

hold my bags while I grab more01/09/2021 19:31

I wanna block y'all too

View all 3 replies


270***08101/09/2021 18:08
how to sign up for alerts?


TradingGlam01/09/2021 17:06
Want to learn patterns, charts, etc all free, follow on instagram, and if you want to trade options, join the group, link on Instagram!


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