Future and Option Trading

In recent correction of Stock Market those who blooded most are Future and Option traders. I have recently stared FnO trading and here I am jotting down some learning for Option Trading:

Don’t speculate about the movement of the market as when you are speculating then actually you are doing wrong judgment for sure.

Look for specific and authentic news which will affect the stock market index and validate whether they are affecting the stock market index.

You can not do precise buying and selling anytime as simply you can’t know the future. So don’t mind if you buy at slightly higher price or sell at a lower price.

Don’t stick to a loss making deal. You can’t be a winner always. If you see that it’s gonna be loss then don’t wait for things to be change and good again. It’s always good to book a less loss than a greater loss.

Book profit as unless and until you book your profit you money is stuck in the market. There is no significance of unrealized profit.

Square off your open position of a day on that same day itself. As in volatile market you never know what will happen tomorrow and when the domestic market is heavily dependent on the world market cues.

Be extra cautions about the open positions and value of a contract when the expiry date arrives.