I have been trading options for the past couple months and have been losing more than winning. What an educational roller coaster.
- Buying Protective puts. but not selling when it was in the money due to fear of underlying stock going lower.
- Buying puts when I should have bought calls.
- Buying calls when I should have bought puts.
- Buying expensive contracts with expirations dates too far away,
- Buying too many contracts to dollar cost average then end up losing more money, decreasing my marginal trading power.
- I tried looking at the biggest market gainers of the day, then buying puts on them. Seeing huge unrealized gains the next day only to find out that when i want to cash in, the no name underlying stock option doesn't have enough buyers and forces me to sell much lower than what I wanted.
I read that playing stocks is checkers and playing options is chess. Am I wrong to say that Options are also like playing Black Jack with like 8 decks." Lower buy ins, greater streaks of losing or winning. Higher chances of you going bust. While trading stocks is like single or double deck black jack. Higher buy ins but better odds of winning / controlling your money.
Does anyone have any principles or strategies they use to increase their chances of making money in options?
Do you ever actually follow through with buying or selling shares when the contracts expire?
Submitted November 30, 2018 at 05:41PM by squarehead18 https://ift.tt/2DRrVxM
