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Episode Summary
In this episode of the 5 Year Millionaire Podcast, I start to wrap up this advanced options series by discussing the 5 traps to avoid when starting to trade advanced options. Make sure the check out my previous last two episodes, where I first introduced advanced options and then the pros and cons of starting to trade advanced options.
Here I go over the 5 most common mistakes traders make in advanced options and I teach you what you can do to avoid them. Whether you're just now starting advanced options or an experienced trader, we all make these mistakes at one point in our trading journey. It could be buying the wrong amount of time, not knowing what you need to protect when trading, or even treating an advanced option like a directional option. Being aware of these mistakes will help you make informed decisions in the future and increase profits long-term.
So tune in to this episode where I break down these common mistakes, so you can cap your losses, reduce risk, and the ultimate goal, make more profit.
If you're ready to dive deeper into advanced options, join us for our upcoming 4-week workshop. Whether you're new to advanced option strategies or a seasoned trader, this workshop is designed to elevate your trading skills and put you on the path to consistent success. Click the button below to learn more.
Video Version
Time Stamps:
[00:00:00] When trading options, choose timing thoughtfully.
[00:04:39] Shorter time frame for credit spread strategy.
[00:09:26] Mixing up options orders can ruin trades.
[00:11:46] Protect against wrong direction, get paid upfront.
[00:16:44] Options offer limited but potentially profitable outcomes.
[00:17:48] Consistency in trading success and the challenge.
[00:22:39] Reduce losses, secure profits, avoid commission traps.
[00:24:48] Don't risk profit on last hour trades.