Investors may lose money due to variable reasons.
An important reason is that investors often hold onto options positions too long, hoping for bigger gains.
A WSB user recently shared a story that he made correct predictions on $NVIDIA Corp(NVDA)$’s recent correction. He bought puts when it dropped from $140 would have been a solid bet.
But he held on it too long, resulting in significant losses (~$60k).
Therefore, options trading is likened to poker and blackjack, where walking away with profits is essential.
Here are seven ways of not losing money. Do you agree with them?
Start Slow and Learn:
Avoid impulsive and frequent trading.
Withdraw Profits Regularly and Keep Cash Handy:
Withdraw some money to saving account to keep the reality of profits tangible.
Maintain a Manageable Account Balance:
Limit yourself to buying one or two options contracts at a time to avoid significant losses.
Discretion and Mindset:
Focus on enjoying the process with less stress and more financial stability in daily life.
Avoid Holding Too Long:
Follow examples of when to sell, even if it means missing potential additional gains.
Consistency and Discipline:
Acknowledge the importance of willpower and staying disciplined, especially when tempted to make impulsive decisions.
Do you have boring ways to not lose money?
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Comments
seeking thrill can be and is dangerous. no doubt having additional gains makes you feel good, like you are at the top of the world, like you are unstoppable... but... that's when market may turn without warnings [sigh] [sigh] [sigh]
so I remind myself to be content and grab whatever [USD] [USD] [USD] and run [Cool] [Cool] [Cool]
@HelenJanet @Universe宇宙 @Shyon @Aqa @GoodLife99 @koolgal @LMSunshine @rL @SPACE ROCKET @TigerGPT
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Join our discussion to win tiger coins!
Another good share