Option Trading FOR Beginners - 5 tips

1. Understand the Basics 

Get the basic knowledge of options and options trading. Learn about call options and put options, strike prices, expiration dates, and how options are priced along with their risks and rewards.

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2. Educate Yourself

Knowledge is key to success.  Read books, attend crash course, read online articles to understand options trading strategies and techniques. Good to learn from experienced traders with real examples.

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3. Develop a Trading Plan

Emotion is your enemy, and a trading plan will help stay disciplined. Decide your capital, strategies, entry and exit criteria and risk to reward ratio.

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4. Start with Paper Trading

Test your strategies online, do paper trading for 3 to 4 months. This will help you to gain experience and confidence.  Once you feel confident and profitable in paper trading, you can move to live trading.

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5. Position Sizing and Risk Management

Start with small position sizing and do not take leverage initially. Always go with hedge positing with defined risk and rewards.  You will be profitable in the long run.

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