This one change can make you a profitable trader

The fundamental reason why retail investor loses money in Options trading is this:

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Retail investors are buying options most of the times instead selling options.

Surprised? Well, yes, as surprising as it sounds, that is the number 1 reason.

So if you want to dramatically improve your trading fortune, just do one thing:

Decrease buying options. Increase selling options

This post we published earlier made it very clear. Need more reasons? Here are some:

  1. Option selling is betting on the passage of time. Every day, options lose time value or theta. You cannot stop the passage of time — it is a certainty.

TL;DR: Please sell options rather than buy options. Every time you feel like buying a call do consider selling a put. If you are confused which one is better, use our Option Trade Analyzer tool here.

PS: When you do sell, stick to predictable options like index options. Avoid single stocks and events.

Would you be a net seller of options in your trades? Let us know your thoughts in the comments and we can help you with a few insights

Options Trading For All

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