In stock trading, mistakes are common, even for seasoned investors.

Selling puts can be a great strategy in a stable market, but timing is everything. In my case, I underestimated the risk of a sudden downturn. Always assess broader market conditions before selling puts, as you could be assigned stocks in a falling market, as I was.

One classic mistake is failing to set stop-loss orders to protect against steep losses. It’s easy to get attached to a stock and hope it will rebound, but having a stop-loss in place ensures you minimize potential damage if things go south.

Emotional trading is another pitfall. Panic selling after a news event or market dip often leads to locking in unnecessary losses. Keeping a cool head and sticking to a plan is crucial.

Mistakes are part of the learning process in stock trading. The key is to analyze where you went wrong and adapt your strategies. My experience with selling puts before a crash taught me the importance of timing and risk management, and it’s a lesson I carry with me into every trade.