| I've been a stock trader for the last ten years | | | | over the weeks and month. Therefore, buying |
| and I absolutely love the thrills of making a great | | | | and holding is never really a wise options strategy. |
| trade. I find it quite addicting. Unfortunately, losing | | | | You should generally look to make some short |
| money on a trade can be just as disheartening, if | | | | term trades whenever you're buying and selling |
| not more. If you're new to the trading world, or | | | | options. |
| even experienced but find yourself struggling, I'd | | | | You'll also want to hedge your bets whenever |
| like to give you a few pieces of advice that I | | | | trading options. Try buying some puts to the |
| think will help you out in your quest to become a | | | | extreme if you've bought calls, and vice versa if |
| great trader. Follow these tips and you'll be in | | | | you've bought puts. It might end up cutting down |
| better shape when it comes to trading options. | | | | on your profits a bit if you win, but this will really |
| First of all, realize the concept of time decay in | | | | hedge you if you lose big time. The last thing you |
| options. This basically means that the further out | | | | want to do is lose your entire investment with |
| you buy a contract for, the more of a premium | | | | options. Sometimes, unfortunately, this happens if |
| it's going to sell at today. As you get closer to | | | | your option never surpasses the strike price. |
| expiration, that time premium gradually shrinks | | | | |