1) have a game plan before you pull the trigger. Have a game plan for entering and exiting for both profit AND loss. Know when to exit a trade, set up alerts for price levels to buy in or sell at based on past and current data. Knowing where resistance or support lie or the volume of trades, or options can help give you a better idea of how to look for/structure trades. Waiting and reacting is cheaper and easier every time.
2) set limits on your trades as a percentage of your portfolio so you dont blow your whole wad in a trade. make only one or two trades at a time. It sucks, especially with a small portfolio, but it will help keep it from getting away from you
3) avoid trading naked options, use spreads to minimize your downside so when you do miss the mark it hurts much less than that $250-$500 contract expiring worthless. This was 100% my biggest mistake early on and learning more about options trading strategies helped me massively compared to the WSB 0dte yolo
4) wait for confirmation to commit to big trades. Let the market show you what its doing and confirm it before you commit heavy. Watch indicators like currency value, volatility index, oil, gold/silver/copper, etc to confirm rotations in and out of markets and combine that with charts and macro data.
5) never go full fomo
Ive been learning the hard way, myself. This market is so fickle that its been difficult to swing trade. Once you have the capital its easy to day trade options for a quick buck, but having to hold them overnight to avoid pattern day trading on makes it hard to predict market action. You can easily use long options contracts to trade and make money or hedge against moves coming at your long holding portfolio.
>Why would you take a Udemy course on trading? That's a waste of money. You should have just taken my free course on YouTube. And why would you YOLO into airline stocks? Everyone knows they're going to crash soon. You're an idiot and you deserve to lose all your money.
First I learned not to YOLO into shares. Then I learned not to fuck with options. Now I DCA into stocks I like, occasionally buy a dip, and chill in the green.
Every time DXY broke out of the down channel in 2022, spy had already peaked or it did the next day and then came crashing down. DXy broke out to upside on Friday. I have a few yolo 410p but if market rallies on Monday, I am doubling down