Not having an options trading strategy is one of the most common mistakes for both new and experienced traders. Another issue is having a strategy but making changes throughout the trade that increase the risk of an overall loss.

When considering any trade, the following issues should be taken into consideration before executing the trade.

Plan to Exit the Trade

It is very common for new traders, and even some experienced traders, to get caught up in thinking about leaving money on the table by getting out of the trade too early.

While this is a possibility, getting out at a pre-set exit point also helps to reduce the risk of losing on the trade. By consistently earning on the trade rather than the rollercoaster of big wins and big losses, traders will see consistent growth in the short and long term.

One of the services we offer with our options trading strategy is information on the trade at various target levels. We provide information on the reward and risks of staying in the trade for the next target level to assist our members in maximizing their gains.

Recognize the Difference in Options and Stocks

Stock options can perform very differently in a market than the underlying stocks. This is a significant issue as sometimes new traders see an effective options trading strategy as doubling up on an option if the stock is performing well.

At Trade Genie, we complete the research for our members, providing information on the specific trades to make, the profit objectives, and the exact buy and sell prices. Following our options trading strategy gives the information needed to execute trades based on the best available information and market research.

Contact Trade Genie for answers to your questions about our memberships, coaching, and services.