00:00Is your biggest problem in options trading wrong entries or wrong risk management?
00:05Many option buyers focus most of their attention on finding the perfect entry.
00:10But in the long term, just the right entry is not enough.
00:13Position sizing and risk management are very important
00:17Today, let's talk about three common mistakes that option buyers should avoid.
00:22The first mistake is not to over leverage just because the premium is cheap.
00:26Suppose the premium of an option is only Rs 20
00:29This does not mean that your risk is also only Rs 20.
00:33Even a cheap option can quickly lose a significant portion of its value.
00:37The second mistake is not to trade without a clear risk plan.
00:40Before taking a trade you should know what to do if my trade goes wrong
00:44So what is the maximum low I can needle?
00:47If you don't know the answer before entering
00:50So you are taking unnecessary risks.
00:52The third mistake is ignoring market volatility.
00:55In low volatility and high volatility markets
00:58The behavior of the same options strategy can be quite different
01:01So before buying an option, I ask myself 3 questions.
01:05What is my setup and how much risk am I taking?
01:07And how is the volatility in the market?
01:09Because a good entry can sometimes give you profit.
01:13But good risk management helps you stay in trading for a long time.
01:17Now tell me which rule do you follow before taking a trade?
01:21Please tell me in the comments
01:23no hype, no false promises, just real market learning
