@Comm4300
I am not sure if you are afraid to enter the market with any option trade. So what can be done to take away some fear from that? I would suggest you to take a trade on a weekly chart. Choose the trend and then choose an otm debit spread. Why otm and why debit spread?
Otm is less risky and debit spread means you are long more atm and short more otm. If trend is up, you try it with a call debit spread vice versa with a put debit spread.
If market now moves up, you start to make profit on the long call and you start to lose on the short call, vice vers with the put debit spread. But all that is not very important in that case. Important is to be in the market and to feel that you not get killed. You will feel that you also can sleep at night. Stay like that for a few days if possible.
The money you can lose is the spread between the long leg and the short leg. So this amount you have to be willing to lose and it should not be more then one or two % of your capital. To get that feeling, there is no other way. You must once enter the market with a very low risk trade and take care just for that trade. Profit in this trades will not be important. If you managed that, then you shipped around of one of the bigger mistakes newbie do: You shipped around the greed the first time in trading. Your first step to implement the rule: Take care about the trade first, as money will follow, will come true and starts to become part of your thinking.
Will do an other post on that subject if wished. Not today but I can do in the coming days. But you have to do your part by entering the market with a low risk trade.
Take care / DanPickUp
I am not sure if you are afraid to enter the market with any option trade. So what can be done to take away some fear from that? I would suggest you to take a trade on a weekly chart. Choose the trend and then choose an otm debit spread. Why otm and why debit spread?
Otm is less risky and debit spread means you are long more atm and short more otm. If trend is up, you try it with a call debit spread vice versa with a put debit spread.
If market now moves up, you start to make profit on the long call and you start to lose on the short call, vice vers with the put debit spread. But all that is not very important in that case. Important is to be in the market and to feel that you not get killed. You will feel that you also can sleep at night. Stay like that for a few days if possible.
The money you can lose is the spread between the long leg and the short leg. So this amount you have to be willing to lose and it should not be more then one or two % of your capital. To get that feeling, there is no other way. You must once enter the market with a very low risk trade and take care just for that trade. Profit in this trades will not be important. If you managed that, then you shipped around of one of the bigger mistakes newbie do: You shipped around the greed the first time in trading. Your first step to implement the rule: Take care about the trade first, as money will follow, will come true and starts to become part of your thinking.
Will do an other post on that subject if wished. Not today but I can do in the coming days. But you have to do your part by entering the market with a low risk trade.
Take care / DanPickUp