Part 7 Trading Masterclass With ExpertsMistakes Beginners Make
Ignoring Time Decay: Many beginners buy out-of-the-money options and lose money as they expire worthless.
Over-Leverage: Betting too much on one trade.
Lack of Exit Plan: Holding options till expiry without managing risk.
Not Understanding Greeks: Greeks (Delta, Theta, Vega, Gamma) explain option movements.
Following Tips Blindly: Always research, don’t rely on random market tips.
The Greeks – A Beginner’s View
Delta: Measures sensitivity of option price to stock price changes.
Theta: Measures time decay.
Vega: Measures sensitivity to volatility.
Gamma: Measures change in delta.
While beginners don’t need to master Greeks immediately, having a basic awareness helps in making smarter trades.
Roadmap to Becoming a Skilled Options Trader
Start with Education: Learn basics before trading.
Paper Trade: Practice without real money.
Begin Small: Trade with limited capital.
Focus on Risk Management: Never risk more than 1–2% of your capital per trade.
Keep a Trading Journal: Record every trade, analyze mistakes.
Gradually Explore Strategies: Start with buying calls/puts, then move to spreads, covered calls, and advanced strategies.
Stay Updated: Market news, volatility, and earnings impact options heavily.
