5 Mental Conditioning Tips For Option Traders

5 Mental Conditioning Tips For Option Traders



5 Mental Conditioning Tips For Option Traders
Too many option traders fail because they load themselves with tons of​ option trading knowledge but do nothing to​ ensure that their emotions don’t get in​ the​ way. ​
Yes,​ more than 95% of​ the​ option traders out there fail because of​ a​ complete lack of​ discipline and​ ability to​ control their emotions. ​

Nothing tests the​ emotions of​ traders more than trading stock options. ​
Stock options move much more than its underlying stock in​ terms of​ percentage due to​ its leverage effect,​ frequently testing the​ emotional capacity of​ option traders,​ particularly those who follow a​ day trading methodology. ​

If you​ find yourselves having a​ burning desire to​ get out of​ a​ trade the​ moment it​ turned red,​ if ​ you​ find yourselves having sleepless nights worrying about your trades,​ if ​ you​ have lost money doing all the​ wrong things at ​ the​ wrong time only to​ regret later,​ then you​ definitely have an emotional problem.
Here are 5 tips every option trader can use to​ ensure a​ healthier mindset and​ mental health while option trading
1. ​
8 Hours of​ Sleep a​ Day!
Yes! This is​ the​ most basic of​ all mental conditioning! Have ample rest! Many option traders who trade the​ US markets from the​ other side of​ the​ globe at ​ night and​ option traders who do their research at ​ night are high risk groups. ​
Over time,​ your mind and​ body grows weary and​ tired. ​
You become hot tempered and​ do all the​ wrong things and​ say all the​ wrong things at ​ the​ wrong time…. ​
And lose money.
2. ​
Set Aside Time Especially For Option Trading
Nothing tests the​ patience of​ an option trader more than option trading while doing something else. ​
Many option traders who trade during office hours secretly on​ their computer terminals frequently find themselves nervous. ​
That nervousness dramatically increases the​ probability of​ doing something wrong. ​
if ​ you​ are a​ working adult,​ use long term option strategies which allow you​ to​ manage your positions only during after office hours. ​
Go to​ http//www.optiontradingpedia.com/options_strategy_library.htm for a​ list of​ option strategies.
3. ​
Understand Your Trading Style
Every option trader has a​ dominant character trait. ​
Your character trait determines what option strategies are suitable for you. ​
Please visit http//psychometric.mastersoequity.com and​ find out what your trading style is.
4. ​
Enjoy Your Weekends
I cannot finish naming those option traders I ​ know who spend all weekend staring at ​ their computer monitor,​ going through the​ trades for the​ week,​ trying to​ find out what’s wrong,​ reading charts and​ news. ​
After a​ stressful weekend in​ front of​ the​ computer,​ an equally stressful option trading week starts. ​
All professional option traders know that weekends are for taking your mind totally off the​ market and​ enjoy time with your loved ones.
5. ​
Find Support
Nothing helps an option trader maintain a​ healthy mindset more than the​ support of​ family,​ loved ones and​ a​ good mentor. ​
Making sure your spouse supports you​ in​ option trading and​ understanding when money is​ lost is​ one of​ the​ most critical aspects of​ keeping a​ healthy mindset. ​
a​ good mentor will also be able to​ counsel you​ and​ tell you​ where you​ went wrong so that you​ never have to​ spend endless stressful hours pondering.




You Might Also Like:




No comments:

Powered by Blogger.