1. Clear Vision Of Target
We must always remember that reward and risk
go hand-in-hand in trading and that we cannot expect to achieve high returns
without planning for high risk (i.e. draw-downs). Your objectives and goals
will be very specific to you, but they must have the following characteristics
to be useful:
Be measurable
Be achievable
Be worthwhile
Be positive
Be measurable
Be achievable
Be worthwhile
Be positive
2. Discipline
This is most important part of option
trading. In order to realize the full potential of your trading systems it is
critical that you take every trading entry, adjust every stop, and close out
every trade as and when your system says you should do
3. Never add to a losing trade
Averaging is Options could prove to be very
dangerous as there is always time factor.
