Rules in Option Trading

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