Remember, trading is impersonal (i.e., you don't have time to become overly attached to a particular company or sector), but how much you invest and how you manage that investment are definitely personal decisions. Your options trades require a little more TLC than your regular stock investments, but a little extra effort now can pay off several times over!
Now that you know some of the pitfalls to avoid when trading options, check out Bryan Perry's "5 Reasons to Trade Options" … the right way!
More about trading options:
- What's Hot: DELL, DHI November 20, 2009
- Sidewinder: MCD, DKS, JPM November 20, 2009
- Options News: SII November 20, 2009
- Sidewinder: CY, ADSK, KG November 19, 2009
- Options for Dummies November 19, 2009
You don't have to buy the same number of contracts with every options trade you make, especially when trading the options of higher-dollar stocks.
3 Secrets of Successful Day Traders
What the pros know can help to keep regular traders from getting scammed.
This isn't our parents' stock market, thanks to the explosion of the derivatives markets during the past few decades that we can use to our advantage!
Avoid This Simple Mistake When Trading LEAPS
To keep from getting 'ticked' off when trading LEAPS, you need to know exactly what you're buying.
