10. No Revenge Trading
Traders often forget that the market is supreme and no one can beat the market, so never fight with the market. If the market hits stop-loss then accept it and move on, calmly wait for the next opportunity, and don’t try to take revenge from the market, it is one of the biggest reasons for big losses in the market.
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11. No Trade Is Also A Good Trade
When the market or chart is beyond the understanding then don’t trade because no trade is also a good trade, in a state of confusion traders majorly take wrong positions so strictly avoid trades in critical situations. When traders avoid trade the possibility of loss becomes zero.
12. No Trade Less Than 1:2 Risk Reward Ratio
The meaning of the 1:2 risk-reward ratio in options trading is that when any setup gives 20 point target then its risk is not more than 10 points. Trade only best risk-reward ratio given setups is one of the most important options trading rule because no one can get 100% accuracy in trading so after making small profits due to the wrong risk-reward ratio traders eventually close in losses, so properly work only on a 1:2 risk-reward ratio.
