Some Basic Trading Tips

There will always be tough months to trade, what should you do?

1. Do not panic! If you are panicking then you are using money that does not need to be tied up in option trading.
2. Think about your picks carefully. Why would one stock make three picks go up? Carefully read the commentary to understand what I am trying to convey.
3. Do not put all your money in at once. Save some so you can add to your position if necessary later. You must remember that most of the time these options gain at least 10%. So, if you buy more at a discounted price your gain could be even higher.
4. Stop worrying about the stop losses and start thinking about the limit orders. Here is how Options-Intelligence suggests trading: Once the option has crossed the 10% level you can place a stop at breakeven, if it falters you have not lost any money. If it crosses 25% you can move the stop to 10-15%. Keep that separation level of 10-15% every 5% it moves up until 50%. At that time you can sell half and let the rest ride adjusting your stop upward along the way keeping a 10-15% separation.
5. Before you panic sell for a loss, contact me, so I can look at your position and give you an opinion as to what the outcome could be. Sometimes two heads are better than one. I have seen almost all types of circumstances and am very familiar with how our positions trade.
6. If you book a profit and the option goes below where you got out, there is nothing wrong with getting back in if the option goes back above your sell point and using a trailing stop to enhance gains.