00:00Do you know what is the biggest mistake in option buying?
00:03Getting the direction wrong isn't always the biggest problem.
00:06Sometimes the real mistake is buying an option just because the premium is low.
00:12Consider that the premium for an option is only Rs 20.
00:16Here the trader thinks that the premium is only Rs 20.
00:20What more can be lost but just looking at the premium price in options
00:24It is not right to judge the risk
00:27Because premiums can change very quickly.
00:30And if the expiry is near then this moment can be even faster
00:34Then another mistake begins.
00:36Entered one trade, premium dropped slightly, then second trade, then third
00:42And in no time, instead of waiting for a clear setup, the trader
00:47Seems to take entries repeatedly
00:49This means that the problem is not just the market, but the problem is taking continuous action without a plan.
00:55An interesting story has emerged in Sevi's data.
00:58Around 97% of individual traders predominantly follow an option buying strategy
01:05But keep in mind that this does not mean that 97% of traders are in the lows
01:11This means that option buying is very popular among retail traders.
01:15And popularity does not mean profitability.
01:19Therefore, before buying an option, ask yourself these four questions.
01:23First what is my trading setup
01:25Secondly, how much risk am I taking in this trade?
01:28Third, if the market goes against me, what is my plan?
01:33Fourth, am I taking entry just by looking at the cheap premium?
01:37In option buying, it is not necessary to consider every market moment as an opportunity.
01:42Sometimes the base trade is not taking any trade at all
01:46Because in trading, money is saved not only by taking the right trade but also by avoiding the wrong trade.
01:52do it do it
