Rules in Option Trading
- Only invest money you are not afraid to loose
- Always set your profit target in your mind and do not be greedy.
- Always capture your profits
- Minimize losses and cut loose bad trades as quickly as possible
- Adjust your option trading strategy as needed
- Never buy option contracts that are way Out The Money
- For a particular stock, make your trades on a catalyst driven event
- Never have more than 5 positions open
- Study all your trades to learn from success and failure
- Don’t trade blindly