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Rich Options Trading, Poor Options Trading
After reading the book “Rich Dad Poor Dad” by Robert Kiyosaki, I came to realize thatnot only is there a rich and poor path in life but also a rich and poor path in optionstrading as well. Many options traders experience defeat in their options trading career,especially during the first few months, because they are unknowingly walking down the poor path in options trading. There are many differences in the approach winners take inoptions trading versus the losers and we shall outline and explore some of these in thisarticle.
Rich Options Trading:
1. Speculative directional options trading using direct call or put options buying only witha small percentage of their fund and only on the stocks with the best chances.2. Extensive use of Option Greeksin order to dynamically hedge a position whenconditions change.3. Always doubt one’s own conclusions and make provisions for losses.4. Always have a stop loss policy already in place or in mind.5. Understands the exactoptions trading stylethat suits them. Emotional options tradersshould stay out of day trading.6. Know that there is no one best way to trade every single situation.7. Do not chase after profitable trades that have been missed earlier on.8. Satisfied with a steady, consistent gain.9. Into options trading for the long run.10. Think options trading education for a start.11. “Trades” the market.12. Keeps a trading log.13. Learn from mistakes.14. Understands technical and fundamental analysis.
 
Poor Options Trading:
1. Speculative directional options trading using direct call or  put optionsbuying with alltheir money hoping to hit a “big one” on stock picks taken from the TV or non- professional friends.2. What are Option Greeks??3. 100% confidence! Full steam ahead!4. Realize it’s too late only when it’s too late.5. Follow whatever options trading style that is supposed to produce extra-ordinary gainsonly to completely break the rules and your pocket.6. Stick to only one way of options trading for all market conditions and situations.7. Missed a trade, watched the price go up and then enters it at that new high price only tosee prices tumbling like a rock thereafter.8. Always looking for ways to make more explosive gains from(http://www.optiontradingpedia.com/stock_options.htm)stock options only to have the dynamite eventually exploding in their face.9. Start options trading with the purpose of quitting after hitting a big profit.10. Think money making for a start.11. “Plays” the market.12. Forgets the last trade made.13. Hates mistakes and tries to forget mistakes.14. Mystifies and follows technical analysis superstitiously.Well, as you can see from the list of differences above, the difference between richoptions trading and poor options trading is not only a matter of technique or method butalso a matter of attitude and mental approach. Only when the right mind meets the righttechnique does rich options trading happen. Are you making any of the mistakes that poor options trading makes?
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