Part 7 Trading Masterclass With Experts

Mistakes Beginners Make

Ignoring Time Decay: Many beginners buy out-of-the-money options and lose money as they expire worthless.

Over-Leverage: Betting too much on one trade.

Lack of Exit Plan: Holding options till expiry without managing risk.

Not Understanding Greeks: Greeks (Delta, Theta, Vega, Gamma) explain option movements.

Following Tips Blindly: Always research, don’t rely on random market tips.

The Greeks – A Beginner’s View

Delta: Measures sensitivity of option price to stock price changes.

Theta: Measures time decay.

Vega: Measures sensitivity to volatility.

Gamma: Measures change in delta.

While beginners don’t need to master Greeks immediately, having a basic awareness helps in making smarter trades.

Roadmap to Becoming a Skilled Options Trader

Start with Education: Learn basics before trading.

Paper Trade: Practice without real money.

Begin Small: Trade with limited capital.

Focus on Risk Management: Never risk more than 1–2% of your capital per trade.

Keep a Trading Journal: Record every trade, analyze mistakes.

Gradually Explore Strategies: Start with buying calls/puts, then move to spreads, covered calls, and advanced strategies.

Stay Updated: Market news, volatility, and earnings impact options heavily.