Mandar Oak
by Mandar Oak
2 min read


61 Top Trading mistakes of Option Buyers - 🧵

  • Buying options when IV is falling.
  • Buying options when the market is stagnant.
  • Not waiting for confirmation of a breakout.

  • Not taking care of proper position sizing.
  • Thinking of only the rewards, ignoring the risks.
  • Jumping to trade without waiting for proper setup formation.

  • Not putting SL in the system.
  • Not calculating SL beforehand.
  • Not having an exit strategy beforehand.

  • Not giving importance to Greeks.
  • Buying OTMs near to expiry, coz they are cheap.
  • 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.
  • Averaging a losing position.

  • Keep holding the losing positions, in hope of a miracle move.
  • Not trailing the SL when in sizeable profit.
  • Trading in Anticipation, without waiting for confirmation.

  • Trying to recover the losses immediately.
  • Not keeping the ego aside while trading.
  • 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.
  • Not respecting the maximum loss limit per trade.

  • Going for BTST without proper data reading.
  • Taking an unnecessarily huge position in BTST.
  • 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.
  • Not letting your profits run longer.

  • Not being able to trail the SL when in profits.
  • Doing revenge trading.
  • Not maintaining a journal of your trades & learnings.

  • Not having an Edge.
  • When having an edge, not exploiting it to fullest.
  • Choosing strategy without an intrinsic edge.

  • Not giving importance to broader market direction.
  • Giving too much importance to world market data.
  • Getting influenced by SGX Nifty.

  • Taking multiple correlated positions at once.
  • Fighting the markets.
  • 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.
  • Holding losers while selling the winners.

  • Not doing EOD analysis.
  • Not making a watchlist for next day.
  • 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.

@CnceptualTrader @threadreaderapp unroll