2. No Over Position Sizing
Position sizing is a crucial factor in trading. Because over-position sizing creates fear in the trader’s mind, which is not good for trading psychology.
Over-position sizing destroys traders’ trading accounts and throws them out of this game. So trade only with one lot till the net profitable for at least three months.
After that traders can increase their position sizing gradually and step by step. Many traders unable to follow this options day trading rule due to greed. After starting small profits traders make big position size and due to it trader lose their maximum capital. So strictly follow this no over position sizing rule.
3. No Overnight Positions
Overnight positions are very risky in limited time markets. so avoid those strictly, especially in the beginning stage. In a running market, traders can easily manage their risk but in overnight positions, they can’t. Mostly traders break this day options trading rule because of lack of experience.
After a lot of experience and a deep understanding of chart and technical analysis, traders can trade overnight positions. In 24 hour markets trader can skip this day options trading rule.
4. No Over Trading
This is a common mistake made by the majority of traders and it is a big reason for losses and unnecessary broking charges. By following one trade per day rule and taking trade only on setup can help them in reducing over-trading. For beginners this is a golden day options trading rule. Which is help them survive for long time in market and save their capital from big losses.