Options Trading Mistakes to Avoid
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- 1.Options Trading Mistakesto AvoidBY: WWW.OP T IONS -TRADING-EDUCAT ION.COM
2. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/Making money in options tradinghas to do with picking the righttrades and avoiding several basicmistakes. 3. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/We would like to offer up a handfulof options trading mistakes toavoid. These include 4. Before We ContinueClick the links below to get yourFREE training materials.Free Weekly Investing WebinarsDont miss these free training events!http://www.profitableinvestingtips.com/free-webinarForex Conspiracy ReportRead every word of this report!http://www.forexconspiracyreport.com 5. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/Limiting yourself to out of themoney call options 6. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/Working with a single all purposeoptions trading strategy 7. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/Not having a clearly defined exitplan for all trades 8. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/Changing your trading strategy in amoment of greed or panic 9. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/Trading options on equities withpoor liquidity 10. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/Forgetting about dividends 11. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/You can make money buyingoptions and you can make moneyselling options. 12. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/And you can lose everything with acouple of bad trades. Here are ourthoughts on options tradingmistakes to avoid. 13. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/Options Trading Strategies 14. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/There are manypotentially profitable optionstrading strategies. There are twobasic options trading mistakes toavoid in regard to tradingstrategies. 15. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/One is that if you are working witha strategy appropriate for thesituation stick with it. 16. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/The other is that not all strategiesare appropriate for all markets andall market conditions. 17. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/Some traders only focus on buyingcalls on out of the money options.This can be very profitable whenthe underlying stock goes upsubstantially in price. 18. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/Unfortunately, out of the moneyoptions are out of the money for agood reason. A lot of smart peoplehave decided that the stock inquestion is going nowhere. 19. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/There is a lot more opportunity inthe options market than justlooking for promising out of themoney call contracts. 20. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/In a very volatile market a popularstrategy is a long straddle. Thetrader buys both a call and a put onthe same stock with the sameexpiration date. 21. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/The rationale is that if the market isvery volatile it is bound to go up ordown sufficiently to render a profitin one direction or the other. 22. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/However, in a more normal marketthere is typically only one directionin which a stock is likely to go andin those cases one is simply wastingmoney on buying either the put orthe call. 23. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/This is one of the common sorts ofoptions trading mistakes to avoidbecause it simply increases theoverhead of trading that you haveto surpass in order to gain a routineprofit. 24. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/Picking an Exit As YouEnter 25. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/Greed and fear are the eternalenemies of all traders. Two of themost common options tradingmistakes to avoid are staying tolong in a trade and losing a profitand getting out too late andabsorbing big losses. 26. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/When you go into a trade youshould have a precise plan forgetting out. If you will be happywith a thirty percent profit on yourtrading capital then get out of thetrade when you have that. 27. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/Likewise if you are willing to absorba thirty percent loss and no more,get out before your loss gets worse.Otherwise fear and greed take overand there go your profits. 28. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/Basic Options TradingMistakes to Avoid 29. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/Do not get into a situation whereyou cannot get out of a trade. Thisis what happens when you tradeoptions with poor liquidity. Avoidthese situations at all costs. 30. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/And, remember that lots of stockspay dividends. The value of youroptions contract will changedramatically when the dividend hasbeen paid. 31. By:http://www.options-trading-education.com/24078/options-trading-mistakes-to-avoid/Remember to calculate dividendswhen trading stock options.