Top Tips for Beginner Options Traders

Top Tips for Beginner Options Traders

August 22, 2017

In a real world, we are somehow busy which lack of time to read and study about everything so everyone requires some advice in personal life or job. Here I want to write a few useful pieces of advice for Options trading, Therefore, I hope they can be useful. Table of Contents1 Understand and Learn […]

In a real world, we are somehow busy which lack of time to read and study about everything so everyone requires some advice in personal life or job. Here I want to write a few useful pieces of advice for Options trading, Therefore, I hope they can be useful.

Understand and Learn Options Trading Before Starting

Don’t hurry up and start Options trading randomly! Random trading is a clear gambling and in the best conditions, you will win some trades by pure chance.

Options trading

Options trading

After Learning Training on options demo account

If you learn mathematics for an important quiz, first you should train and solve a lot of questions to be ready for the real quiz. Then don’t start real trading before demo trading.

Choose a Highly Esteemed Trading Options Broker

Just imagine you start your real trading and earn a lot of profit now. When you want to withdraw your profit, the broker will not pay your request! It’s very important to choose a famous and well-known broker to be sure about payout requests.

Always Learn and Learn Trading Options  strategies

Many new callow traders get so contemplated the exciting prospect of earning a large amount of money that they skip this step. It is important to learn all the time and keep yourself up to date. In fact, many experienced traders use demo accounts to check their new strategies and techniques. Therefore, you require it as well even if you are a professional trader.

learning Options trading

learning Options trading

Research the Options Trading Markets and Carry out a Strategy

All successful traders research the market well. They will keep themselves up to date with any news that probably effects on the market price and keeps an eye on an economic Calendar. Trading without studying a subject or Options trading strategy is a certain way to lose more trades than you win and your broker will love you!

Options trading

Choose Your Option Trading Symbols Wisely

Pick one of the available symbols to trade. Try to focus on one asset to trade and when you understand it, choose another symbol to trade. Don’t try to analyze all symbols. Remember again avoid analyzing new symbol unless you already got familiar with your current symbol.

Manage Your Money and Your Trading Options Risks Wisely

There is a proverb “Don’t put all your eggs in one basket”

This is a reality for Options traders too. You should never do high risk on one deal. Many professional traders never risk more than 5% of their asset on a single trade. If you lose 5%,  then 95% asset is available to continue and can recover quickly.

Options trading

Options trading

Don’t Use Very Long-term Options.

Avoid very long-term Trading Options until you are more experienced.  It is very hard to forecast where an asset price will be in one month or more!

Check The Trading Options Experts’ Signals

Signal providers will distribute you their predictions. You can check your analyzing skills by comparing it with signal providers but remember that first analyzing yourself and then look at their signals because you should stay on your mind if you look at their signal before your analyzing.  You can’t become independent in your trading, However, they do not always predict correctly.

Don’t Look for Magic Rules for Options Trading.

Unfortunately, many traders are looking for simple and magic rules to earn a profit even in Options trading. I should say that there is no magic formula or blueprint that you can follow to ensure success.

Options trading

Options trading

Don’t Jump Between Trading Options Strategies

If you find a new profitable strategy, follow it till it will give you profit. Don’t change your strategy if you want to check the new strategy. Test it on a demo account. Unfortunately, some traders change their strategies. It is not a good behavior. Top traders can stay and stick with their strategies.

Options trading

Options trading

Don’t Use Complicated Strategies

Complicated systems may keep busy your time, but they are unlikely to improve your results. Simple Options strategies are better.

Options trading

Options trading

Poor Timing

Identifying trading opportunities is only one part of a successful accomplishment. You need to know when to put your trades also. You won’t make profits from missing time your entries or exiting. Many traders make this mistake and can’t understand why they don’t make money. Look at both your strategies and your knowledge to get how you can increase your entry and exit precision.

Options trading

Options trading

Understand How Emotions Can Affect Your Mind and your Trading on Options

It is important that your emotions will affect your trading results. A successful trader should learn how to discipline his/her trading activity. To become a successful trader in Trading Options, you must be able to control your emotions effectively; hence prevent them from influencing your trading decisions.

Options trading

Options trading

Don’t Expect to Be a Millionaire Quickly

It’s clear! Don’t hurry up. Go ahead step by step.

Options trading

Options trading

https://www.closeoption.com/blog/free-trading-options-demo-account/

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Top Tips for Beginner Options Traders • CloseOption Official Blog