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Prashant Mullick @VohiCapital
, 20 tweets, 5 min read Read on Twitter
Don't get into #OptionsTrading with less than 25L if primary engine is #OptionSelling

Don't create focus on return in trades.

Do create focus on method and trading skill development

Do keep a trade journal to record trade entries, exits, adjustments and new potential trade ideas.

Don't rely on other trader's ideas, entries, exits, profit statements for your own trade confidence.

Do spend all the time you can reading, learning #OptionsPricing to develop a basic understanding of the risks that compose the edge in #OptionsTrading

Don't simply trade options like you would regular stock. Find out what else affects options pricing other than the movements of the underlying stock.

Don't get lured by massive margins and exposure offered by discount brokers

Do look for stable brokers even if it means you pay slightly more for trade execution

Do find mentors that you can access and have interests similar to yours.

Don't simply rely on attending workshops. They can be useful to lead you into a path of learning. Use them as stepping stones to a faster learning curve, but don't assume large risks coming straight off of them.

Do start #OptionsTrading with risk defined trades.

Don't get into #OptionsTrading close to expiry

Do initiate #OptionsTrading positions atleast 45 days to expiry

Do keep a tab and limits on the exposure you take on naked as well as risk defined short option positions.

Don't go over a notional exposure of 2, period.

Do practice #papertrading options for at least 3 months before deploying the initial 25L.
In this period, start off with 10 per day and get to putting on a minimum 50 trades per day. Enter, manage, exit each of them as per your pre-defined rules.

Aim is to develop skill.

Don't assume that #OptionsTrading can be done easily as a part-time effort.

Part-time #OptionsTrading is possible, but involves a specific subset of strategies that can be deployed.

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