Many people say that playing options is a form of gambling with high risk and high return, but this is for newbies. For experts, options are actually a stable profit tool. So what's the difference between a novice and a pro?
The real gap between newbies and experts is not actually a difference in investment judgment, but a difference in way of thinking. Many newcomers to options are new to stock trading. They often trade options with a typical stock mentality, and this is the core reason why they keep falling behind.
However, real options traders have a completely different way of thinking and approach.
It's not a very advanced method, but it's often difficult for newbies to understand on their own without reminders from others. And this whole process will waste a lot of money, and you may even give up halfway before you have experienced the true power of expiration rights.
So, today Xiaobian will reveal the real expert trading mentality and the complete set of methods behind it. After reading it, I won't say you can become an options expert right away, but it will definitely let you take fewer detours in options trading.
What is stock thinking?
First, options newbies will habitually use stock thinking to trade options.
Simply put, it's either bullish or bearish, because stocks are only bullish and bearish.
For example, if you are bullish, you buy a call; if you are bearish, you buy a put. Those who are a little more advanced will understand that they will be bullish or bearish for a certain period of time.
For example, I'm...