How to become full time option trader?

How to become full time option trader?

How to become a full-time options trader?

How to become full time option trader

  1. To become a full-time options trader is the dream of many people only a few people succeed it.
  2. Learn option chain analysis and option greeks
  3. People who become full-time options traders are skilled at money management and risk-taking.
  4. Your trading decision should be based upon the good reasoning and logic
  5. Emotion will destroy you during your trading path
  6. Under the stress environment, retail traders become more emotional
  7. Don't try to predict the future price 
  8. Plan your trade and then trade your plan
  9. Always have a plan if your planning goes wrong
  10. To time the market accurate understand what volume is trying to do -identify testing up move or down move - stopping volume - no demand zone will help you to time the market.
  11. When they trade with emotion the emotional factors like fear-hope and greed increases
  12. When you are on the losing side of the market the stress interferes with your logical decision-making process.
  13. For example, if you are long on the market and market start down move, you are hoping for recovery for the exit because you are on the wrong side.
  14. On the other side, if you are long on the market and market start-up move, you are in fear of down move and start booking small profits,
  15. Unless you develop a trading system based on data this will happen again and again 

Develop a trading system

  1. Any trading system is not perfect because it is designed by human and there is always a possibility of human error
  2. A trading system should be based on data and its correlation
  3. A trading system must have two essential component 
  4. A trading system should cut your losses as quickly as possible and runs your profitable trade in the trade direction
  5. This principle is completely opposite of what the retail traders trying to do
  6. They don't cut their losses when they are wrong and get out early when they see a small profit
  7. A good trading system allows small losses and long profits
  8. If you develop this system and trying to bypass the sytem it makes you very valuable and undisciplined.
  9. Try to paper trade with your trading system this will help you to control impulsive trading.
  10. Those traders who don't want paper trading will not become a good trader
  11. To develop trading it is like writing the rules if you don't follow the rule you cant develop the rules

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