Trading involves risk. Without learning,trading is betting or speculating. Options trading can be extremely risky for a beginner. One should not start his trading career with options trading.The speculative nature of options will make the beginner as a gambler. Every Indian knows the story of "Mahabharatha" and the consequences of betting/gambling from it. When I started my trading career I watched how option trading was working. It was tough to understand options and I felt it was like gambling. And I just eliminated it from my trading. It is not suitable for my personality.
Why it is important to protect your money/capital? Every loss takes money and also some part of your courage along with it. You are not only losing your money, but also your courage. I remember one story. I didnt remember the king's name. Once there lived a mighty king. The King was good and he was blessed by all 8 Lakshmi. There came a time when according to that king's fate all Lakshmi should leave him. Since king was good, each Lakshmi asked his permission to go. He gave permission to all Lakshmi, but refused to allow "Veer Lakshmi". One by one all Lakshmi came back to him as the king had the blessing of Veer Lakhsmi. Your capital represents your courage and money. Protect it by your technical knowledge in trading.
Comments
murasolivm
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Since this post is about learning,I wish to ask for Vidya Lakshmi so that i can attract all other Lakshmi's- @vanathi
dravya
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Options were designed for hedging, but small retailers use it for speculating and trade naked options, thereby exposing themselves to a lot of risk !!
shiv_n
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@dravya, if we make stretegy for option trading then its not risky... but before start anything learning should reeqire....
experience is always a unbiased friend. your sharing is most valuable.
vanathi
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@jtstv16, Thank you for the kind words...
CPR_Trader
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Nice Article with great example..!!
vanathi
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@narendkadam, Thank you...
AshishChauhan_AlgoTrader
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Nice article..and full agree with it..Learning is important first and the practicing it until you master it....before that doing trading is waiting money only...its not a easy game...