A Disciplined Approach To Trading Options
Kirk Du Plessis | Feb 20, 2012 11:03PM ET
Many traders lose simply out of ignorance – as bad as this sounds it’s completely true. Honestly I throw myself into this category as well somethings when I see something I know I should trade on and I don’t.
You see most investors base their trades on hunches, news, or tips from friends which we all know is baseless but we still do it anyway. And yet we have no specific risk and contingency plans (one for winning and one for losing).
- Trade the probabilities and don’t guess.
- Use your head and stay calm – don’t get excited or depressed.
- Count your money at the end of the month – not hour by hour or day by day (beginners do this!).
There are countless ways to develop a disciplined approach to trading options. Whatever your routine, establish it early and follow it on a consistent basis with minor tweaks along the way. Success comes to those who are prepared to handle it.
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