≡ Menu

What You Should Look At Before Trading Options

Fill this Form to Get 5 Day Free Course on Options And Immediately Get an email to Download eBook on Option Greeks


Option traders must be very smart before they put their money on risk trading options.
In this post I will discuss some things what an option trader must look at before trading.

No 1 question should be – “Does This Fit My Portfolio?”

Before trading you must know your max risk in the trade. If your max risk is more than what you can afford its better to avoid trading. Do not trade against your portfolio size.

No 2 is – “What Plan I Have If My Trade Goes Wrong?”

Do not hesitate to take a stop loss if the position goes against you. However on the contrary traders seems to average out a bad position.

Here is an example. Nifty option bought at 50 goes down to 30. The trader buys another option to average out at 40. However this is a mistake. If you have 5 long trades its foolish to add more bullish trades if the strategy is losing money. Its better to keep some money to go short if the long trade is going wrong. If you do not have money to go against the losing trade no one is stopping you to exit the trade and take a stop loss.

No 3 – Check Liquidity Before Trading

You cannot do business in a marketplace where there are no buyers/sellers. So you must check liquidity of that strike before trading. If there is less liquidity change the strike to trade in a liquid strike. You cannot scale a trade that doesn’t have enough liquidity. If you become a good trader and want to become a full time trader you cannot do that with one or two lots. You may have to increase the lot size to make a substantial income.

If checking liquidity becomes a habit then it will be good for your future. A strike with good liquidity can be easily traded with “Market Orders”. However in strikes where there is less liquidity you may find difficulty getting out of positions even if you are in good profit.


What you should do now

1. If you have still not subscribed for my free 5 days course you can do by filling the form above. You will learn a lot about option trading.

2. If you are a new option trader, not much experienced and are making losses you can do my paid course. I recommend Nifty Conservative Option Course for beginners because it is easy to understand and easy to trade. Even a 18 year old young trader or a housewife can learn it and start trading from next day. It will help you to earn consistent monthly income without any software or speculation or stress or big risk. You will learn proper hedging strategies that works in any market condition.

3. If you are banknifty weekly options trader you can do my Bank Nifty Weekly Options & Futures Strategy Course. You will learn future and option hedging strategies that works in volatile market condition.

Testimonials

What Traders Say About My Course

Course fees: Click here to know the course fees.

Here is complete process of my course

1. Once you pay I will send you the course materials for studying to your email.
2. You read and ask me questions via phone/whatsapp/email to clear doubts.
3. Then you start paper trading and still can ask me questions.
4. After about one month you can start trading.
5. Since doubts can come anytime the support will be there for one year.

Within one month you can start trading on your own. No need to depend on anyone once you are on your own.

If you have any question you can contact me.

You can read about me here and my trading mistakes here.

TheOptionCourse.com Copyright @ All Rights Reserved
Dilip Shaw, Founder

Copyright Infringement: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.

INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website. Please note that I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other form of social media. I strictly adhere to laws of my country. I only offer education on finance, investments on stock markets in the best possible way as much as I can through this website. Still, you must consult an authorized advisor or do thorough research before investing in any stock or derivative before trading any strategy given in this website. I am not responsible for any investment decision you take after reading any article given in this website. Knowledge is the only way to get success in stock markets. I try my best to give stock market investing and trading knowledge through the articles posted in this website. Thanks for visiting my website.

All Options Do Not Expire Worthless

About the author: I started trading stock markets since 2007. However my first 3 years were losses. Then I dedicated almost 1 year on studying, researching, paper trading options and learned a lot in that time. Since 2011 I am trading Nifty options profitably. Call me if you need any help trading options on 9051143004.

{ 0 comments… add one }

Leave a Comment

Menu