The stockmarket is not an auto-teller machine where you just head to withdraw cash at will. The Stockmarket is like an ocean and all of us option traders are seafarers.
All veteran seafarers know that there are seasons where you should not go out to sea at all. These are the periods where the veterans seat back and watch the beginners perish in the thunder storms.
An Options trader recognizes such seasons and is patient in waiting for the harvest time to come before making a move. Many newbies option traders (yes, broke too) are more fascinated in creating lots of trades than to have rewarding trades.
Most of them will hurry in and just trade some thing even though market situations are too turbulent to cause a profitable trade.As we have stated before, option trading greatly amplifies every whipsaws made by the underlying asset.
When you enter the market during very turbulent times, the whipsaws are enough to scare each option trader into doing the wrong moves or to result in unnecessary tripping of stop loss items.
An options trader is just like an eagle; He soars and glides peacefully and patiently, only when a clear opportunity turns up does he soar down mercilessly for the kill.
This trader is organized in figuring out trading opportunities, systematic in trade and portfolio management, systematic in the delivery of every trade, systematic in the stop loss of every trade, systematic in the profit taking of each trade, systematic with her or his life-style (so as to keep a sound mind on trading hours), systematic in loss recovery, and much more. Nothing is left to last minute decisions.
Nobody can be trusted to make great options under pressure. You leave no decision to be made during those times as each opportunity and also their corresponding action has been planned beforehand.
Unsystematic option traders, especially in the area of trade management , will often find theirselves making huge losses and very small earnings all the time.
You have to be not just systematic, but also a highly disciplined trader. Stick to their trading plan, stop loss points and profit taking technique with an iron clad discipline no matter how good or terrible their own situation is doing.
Being disciplined also imply that millionaire choice traders aren’t driven by fear of loss or greed for income. They have just one mission and that is to carry their trading processes to their ends.
Options trading could be difficult, but with more training you can make winning trades.
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