Most people sell #options for #income…
Then panic at the first drawdown.
Reality:
Drawdowns are part of the game.
If your sizing is right,
you survive.
If not, you’re done.
Most traders don’t blow up in one trade.
They bleed slowly.
7 mistakes:
https://t.co/BKJ996oe5d too big
2.Ignoring IV
3.Bad companies
4.Chasing premium
5.Overtrading
6.Ignoring assignment
https://t.co/O4fbfpoFvm exit plan
Most traders don’t blow up in one #trade.
They bleed slowly.
7 mistakes:
https://t.co/BKJ996oe5d too big
2.Ignoring IV
3.Bad companies
4.Chasing premium
5.Overtrading
6.Ignoring assignment
https://t.co/O4fbfpoFvm exit plan
The fastest way to lose money in options:
Trading too many stocks.
I trade the same few names repeatedly.
What do you prefer?
• #SPY / #QQQ
• #AAPL / #MSFT
• High IV stocks
7 mistakes beginner options traders make
- Trading too large
- Ignoring volatility
- Selling options on weak companies
- Chasing premium
- Overtrading
- Ignoring risk management
- Not understanding assignment
Most accounts blow up because of risk, not strategy.