I have been trading for about two years and want to share what helped me learn options.
I started with basic videos, but they were not enough. I lost money early because I rushed into it.
Reading books about options and paper trading for months helped a lot. I also joined trading communities to learn from others.
I still make mistakes but have improved from the start. The key is to take it slow and not risk money I cannot afford to lose.
Demo accounts are great for practice but trading real money changes everything emotionally.
My biggest mistake? Thinking I understood volatility after just reading about it. Then Tesla earnings destroyed me.
You don’t really get volatility until you lose money on it. Start with cheap options on boring stocks before you touch anything pricey or wild.
Track every trade outcome and pattern. Most new traders blow up within 6 months due to poor risk management. Never risk over 2% of your account on a trade. Set stop losses accordingly.
Focusing on delta and theta helped clear up confusion about Greeks. Time decay is important. It prevents holding onto losing positions for too long.
Experiencing volatility crush after earnings was a tough lesson. Now, positions usually close before big events unless targeting volatility moves.
Books are essential, but paper trading only gets you so far. You need to trade real money, even tiny amounts, to understand how emotions mess with your head. After two years, I’m still learning constantly. I’ve seen too many people get cocky after a few wins and blow up their accounts. Keep your position sizes small and focus on why you’re making each trade, not just the money you might make.