Welcome to December!
The last month of the year is always a strange one as fund managers look more to locking in gains and handling year end tax consequences rather than committing new money. Volume will continue to get thinner as the holidays approach. January, on the other hand, is a great month to trade as everyone starts with a clean slate.
Therefore, barring unforeseen developments, I will not be doing a lot of new writing this month. Of course, if there is a particular topic you would like to see covered, you have but to ask.
Let?s start with a few basics. Don?t put money in an options trading account that you cannot afford to lose. I promise you, if you worry about losses you will never make money.
Always remember to never confuse trading with investing and vice versa. They are completely different beasts.
Don?t have more than 10% of your trading account in any one trade. And always keep at least 10% of your account in cash so you can pounce on a sudden opportunity.
Keep a?trading log.?It does wonders for your discipline and peace of mind.
Keep. Your. Discipline. Financial, emotional, intellectual.
You don?t have to trade every day. The only reason to trade is to make money. It?s not a hobby or ?something to do?.
You can never stop learning. The more you put into trading options the more you take out.