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Trading Options For Dummies, 2nd Edition by Joe Duarte

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Chapter 18

Ten Do’s and Don’ts in Options Trading

In This Chapter

arrow Understanding what makes a trader successful

arrow Creating your success

Trading is all about preparation with a hefty dose of obsessive compulsive attention to detail, and the understanding that things could go against you, which is why risk management is your first objective. The markets don’t care who you are or what you stand for. All they know is that you’ve got money that they want to take from you. To become a trader, you must understand that so deeply that it becomes part of your DNA, or you will lose a lot of money in a hurry. That’s why developing as a trader begins with using a formula-type trading plan as part of your approach to the markets along with being familiar with different strategies. Skillfully applying your trading plan as a seasoned pro requires practice, patience, and experience. It’s a journey that, ideally, you must welcome, hone, and implement as part of your life.

Hopefully, in this book you’ll find plenty of rules, steps, and concrete methods to take away with you. This book is meant to provide you with some important trading nuances . . . things that can’t quite be mechanically applied. This chapter focuses on those.

Do Focus on Managing Risk

Managing risk is the name of the game ...

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