5 Deadly Habits Traders Do, and How To Fix Them.

Get rid of these bad behaviors, and your trading edge will skyrocket.

Introduction

What exactly is a habit?

A habit is anything you do on a regular basis, such as hourly, daily, or monthly.

A habit is something you do on a regular basis and will continue to do in the future.

Brushing your teeth, for example, is a healthy practice.

Long-term, positive behaviors can improve the quality of your life.

Some behaviors, like as smoking, excessive trading, excessive leveraging, and so on, might be harmful to your health.

What are some of the poor habits that we can break in options trading?

Here are 5 behaviors you may break to boost your options trading performance dramatically!

1. Excessive Trading

Taking too many trades is one of the most typical reasons I see traders fail.

How can you expect to make 20 manual trades a day and win from the majority of them unless you have an algorithm creating trade signals like we do at MbcTrader?

Furthermore, how are you going to manage 20 trades?

You can't manage too many options trades without diminishing the precision and profitability of each one unless you have a crew overseeing each one.

Overtrading increases your overall risk and puts your funds at risk of being deployed too soon.

Solution to Over Trading

Limiting the amount of deals you execute each month to 10 or less is a simple but highly effective remedy to over trading.

You can boost your total profitability by focusing on 10 exceptional trades per month. We cannot stress how important this advise is.

By executing fewer transactions per month, you'll have more time to wait for the correct set up and conditions to materialize for the ideal trades.

If you stick to this strategy, your trading performance will skyrocket.

2. Playing Options That Are Expiring In 7 Days Or Less.

We've all traded options that expire in seven days or fewer.

Due to the short period of time till expiry and other considerations, these "weeklies" options contracts are extremely volatile.

While the high return on investment (ROI) of weeklies may be appealing, they are extremely risky investments.

Playing weeklies is the most popular way for a trader to blow up their account!

Short-term price fluctuation is impossible to forecast 100 percent of the time. That is why weeklies are so risky.

Solution

Trade options with a 30-day or longer expiration date. This gives you enough time to adjust to any short-term price fluctuations.

3. Investing While Under the Influence of Alcohol.

I know a few folks who trade while smoking or drinking. This is not a wise decision.

When trading options or studying fresh ideas, everything that dulls your sharp thinking should be avoided.

Market makers already have an advantage over typical options traders; don't give them a bigger advantage by dulling your thinking.

Solution

When trading options, keep your thoughts clear. Options are already quite volatile. To be lucrative in the long run, you must be on top of your game when it comes to monitoring your positions and executing trades. Meditation and exercise can help you enhance blood flow to your brain, which will help you trade even more sharply. It comes highly recommended.

4. Putting Too Much Money Into One Trade

Greed can be both beneficial and harmful. Greed motivates you to work hard and seek out new chances.

Greed also drives you to enter transactions at the top of the market, risking your whole account balance in one trade for that delicious return.

Greed is the reason why many traders blow up their portfolios by putting all of their money into weeklies.

Using too much capital on a single trade is not a good idea for experienced traders like you and me.

A string of significant capital losses can spell the end of your trading career, and this isn't a joke.

You are compromising your future as a trader by putting too much money into one trade, no matter how confident you are!

Solution

Set a budget for each trade and stick to it. Use a small amount of capital per trade to increase your chances of hitting that huge ROI trade.

5. Relying on your instincts rather than data.

Your gut can be a good indicator for trading.

If you feel bad in a trade, it usually is bad.

If you feel great in a trade, it usually means prices will go down soon.

Did you catch that?

If you feel good in your gut you'll most likely lose, if you feel bad in your gut, you're still most likely to lose!

Our bodies are not a good indicator of price direction.

What really predicts price direction is data!

Follow the right data instead of your emotions and you will succeed more times than not.

Solution

Don't trust your gut instincts. Instead, be analytical and follow a predetermined plan.

Instead of going with your instinct, use statistics.

MbcTrader, our company, provides vital real-time options data! We want a piece of the action if someone invests $10 million in a 7-day option.

You can now follow the smart money selections as well.

Conclusion

On your trip, you will develop a variety of behaviors. You may improve your trading edge by incorporating positive habits and eliminating negative ones.

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