the biggest trading mistakes in this video you're going to learn the biggest trading mistakes that
options traders make the first trading mistake that many traders make is that they trade way
too often i understand the tastytrade encourages people to trade small and trade often however
i believe that virtually all tasty traders will end up in a margin call and they'll be forced to
close out their positions at the most inopportune time a far better strategy is to make sure that
you only trade the best opportunities that you have in front of you there's an old saying about
maximizing your happiness and it says do what you can with what you have where you are and in
many situations traders do not do what they can with what they have where they are instead they
try to force trades and it's usually those trades that they end up forcing that they know that they
shouldn't make that end up biting them in the butt so definitely the first trading mistake
is that you should not trade too often just having two or three positions open at one time
is oftentimes more than enough the second trading mistake that i see people make is that they
trade too large and they trade too big even if you're winning 90 to 95 percent of your trades
it only takes one really bad situation where the market pulls back 10 or 15 percent in two weeks
for you to be forced in a margin call and for you to have to close out your positions at a very
large loss remember if you end up winning over 95 percent of your trades then that means that
the magnitude of the losses that you incur for the trades that you don't win are going to be larger
than the average win that you experience as well you have to make sure that you reduce your risk
and you mitigate your portfolio volatility for the trades that you don't win and frequently what
happens especially with inexperienced traders is that they end up trading way too large and
then they succumb to the correlation risk when the market pulls back and then they're forced to close
out their positions at the most inopportune time the next biggest mistake that i see
is many traders are not buying options you need to buy options in order to protect and
mitigate portfolio volatility this is extremely important and finally the last mistake that i see
is traders having unrealistic expectations the probability that you're going to be able
to turn 500 into 50 000 is virtually zero it's better for you to go to a casino than for you to
take outlandish risk than ride the ups and the downs of being on an emotional roller coaster
the probability of you turning a little bit of money into a large amount of money when trading
is very low you're much better off hitting singles trying to earn about 25 to 30 percent every single
year minimizing your portfolio volatility and spending about 10 to 15 minutes a day
trading and the rest of the time you're working on your main job or your side hustle by doing it the
right way then trading will be a great source of incremental wealth where you can layer it
on top of your existing job or on top of your side hustle and when you combine and aggregate
all your incomes together then trading can be an amazing way for you to boost your income overall
but just make sure that you avoid these mistakes David Jaffee with beststockstrategy.com visit
beststockstrategy.com enter in your email address and receive over $400 valuable free training
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