Many times you know that when a trade goes wrong

Many times you know that when a trade goes wrong, you should get
out immediately without having any second thought but your ego tell
you to hang on. Maybe you are able to recover your losing trades and
turn it into winners most of the time. You average down and buy more
to support your theory of being right, it is only going to heat up your
over confidence level and one day the market is going to break you for
that.

Respect your trading rules, admit your mistakes, learn from them and
you can be sure that you are on the right track in becoming a better
options trader.

Your ego can be your greatest enemy

Your ego can be your greatest enemy. Over confidence in your ability
to make forecast and profit from it can be a setup for your downfall as
an options trader. This can cause you to be irrational when your




emotions take custody over your thinking and you’ll lose your ability to
trade properly. You begin to make stupid mistakes and lose badly. To
break the spell, you’ll have to take a break to detach and unlearn of
what that have been taught to you.

Trader wannabes must learn to seek and develop the ability to analyze

Trader wannabes must learn to seek and develop the ability to analyze
information given to them even though they have paid for it. One way
is to seek information from a few more sources so that you’ll have a
clearer perspective before making any major decisions.

The only way is to paper trade and test it out first to see whether what
have been taught is credible. You must stay within your level of
competence and be questionable of everything you see or learn. It is
your money that is at risk not the person who is teaching you to trade.
It is better to be safe than sorry.