In this business you are crazy if you don’t have an options trading system to follow. Even a simple 5 step system like the one we are going to show you below will help start to reinforce the necessary trading mechanics you need to profit.
Every trader should have a system that matches their own trading style. But for now, feel free to use and expand on the one we outline here below for you. Any system is better than no system.
Step 1: Personal Assessment Time
This may be hard for some of you who are not profitable (at least yet), but you have to take a look back at your trading history. Where have you made bad decisions and where do you make great trades? What set-ups work for you and which don’t?
It’s going to take some quality time with…yourself, but you will start to see clearly what kind of trader you need to become. Or at least what areas you need to focus on going forward.
Step 2: Write Down Your New Plan
Cardinal rule of goal setting: WRITE IT DOWN! Simple I know, so why don’t you do it? Do it right now if you have to – just get something on paper already! Write down 4-5 simple rules, goals, strategies you will obey over the coming month.
After that month, reassess your goals and rules and do it all over again. Whatever you do just write down your plans and you’ll be amazed how far you will go.
Step 3: Fill In The Gaps
We all are weak in some areas of trading. For you it could be option pricing models or strategy selection. Learn what you’re missing and fill in the education gaps. A great way to get feedback and help is through our Facebook Community. Use these 3,500+ traders to bounce ideas off and new strategies.
Everyone is quite different in what they need to brush up on, so find out what it is for you and get working on improving that area.
Step 4: Start Trading Already
You have the knowledge – just get trading already. Slowly at first of course (don’t bet the FARM on the next trade). Practice makes perfect in everything we do in life – why would options trading be any different? The only way to really make sure that your new options trading system works is to use it over and over again.
Each month revisit your strategy and adjust as needed. To be honest this whole process can take years to perfect (if ever), but it will help you continue to push your limits and grow your bank account.
Step 5: Get A Coach
Options trading takes time and experience to perfect. Having said that, if you are the only one looking at your strategy day in and day out, how biased is that going to be? You may be too hard or too soft on your own strategy and thinking. So bring in an outside to help you!
Explain your strategy to them and they will help you close all the loop-holes you may have not even thought about. Additionally they will help keep you accountable for your system and goals.
What type of simple rules or systems have worked for you in the past? Don’t be afraid to share! We can all learn something new!
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