61 Top Trading mistakes of Option Buyers - 🧵
- Buying options when IV is falling.
- Buying options when the market is stagnant.
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Not waiting for confirmation of a breakout.
- Not taking care of proper position sizing.
- Thinking of only the rewards, ignoring the risks.
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Jumping to trade without waiting for proper setup formation.
- Not putting SL in the system.
- Not calculating SL beforehand.
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Not having an exit strategy beforehand.
- Not giving importance to Greeks.
- Buying OTMs near to expiry, coz they are cheap.
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Buying OTM in large quantities, coz they are cheap.
- Trading in FOMO (Fear of Missing opportunity).
- Not accepting that you’ve entered the wrong direction.
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Averaging a losing position.
- Keep holding the losing positions, in hope of a miracle move.
- Not trailing the SL when in sizeable profit.
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Trading in Anticipation, without waiting for confirmation.
- Trying to recover the losses immediately.
- Not keeping the ego aside while trading.
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Putting all your capital in a single trade.
- Not having a pre-defined loss limit for the day.
- Using all your loss limits in a single trade.
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Not respecting the maximum loss limit per trade.
- Going for BTST without proper data reading.
- Taking an unnecessarily huge position in BTST.
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Converting your intraday position into BTST just because it is in loss.
- Expecting the market to go up or down in a linear fashion.
- Booking your position at the slightest of volatility.
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Not letting your profits run longer.
- Not being able to trail the SL when in profits.
- Doing revenge trading.
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Not maintaining a journal of your trades & learnings.
- Not having an Edge.
- When having an edge, not exploiting it to fullest.
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Choosing strategy without an intrinsic edge.
- Not giving importance to broader market direction.
- Giving too much importance to world market data.
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Getting influenced by SGX Nifty.
- Taking multiple correlated positions at once.
- Fighting the markets.
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Mixing up investing & trading.
- Not having a plan for the fact that any view can go wrong at any point in time.
- Expecting to get rich overnight.
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Holding losers while selling the winners.
- Not doing EOD analysis.
- Not making a watchlist for next day.
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Not expecting the unexpected.
- Chasing the trades instead of waiting for them to come to you.
- Jumping from one trading style to another, without proper practice.
Those were the 50 mistakes. I will DM you the list of the remaining Top 11 mistakes of option Buyers once you RETWEET the first tweet of the thread below & Follow Me @CnceptualTrader
Thank you.
61 Top Trading mistakes of Option Buyers -
— The Cnceptual Trader (@CnceptualTrader) August 29, 2022
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@CnceptualTrader @threadreaderapp unroll