The Second Deadly Option Spread Trading Sin: LazinessProvided By Ultimate Trading Systems Laziness Could Be The End Of Your Option Spread Trading CareerPeople who are lazy in their option spread trading are certain to become losing traders. If you neglect to research and monitor your positions and markets when option spread trading, you wont have a good sense of what strategy to employ. Lazy traders often dont have a concrete plan because of the effort it takes to create a plan tailored to their interests and abilities. Yet option spread trading without a plan is the surest way to lose in any market. The person who is considered lazy in option spread trading might buy a stock because he sees that it's been going up steadily for a week and a half. He doesn't know why, but he does know the experts say its a "strong" stock. He buys it in the morning, it goes up a few percentage points, and he assumes hes made a winning trade. To his surprise, the stock does a falls in the afternoon and starts going down as steadily as it went up in the morning. This trader can't figure out what went wrong. Why did it fall? If he had made the effort to check the earnings calendar, he'd have seen that the company was scheduled to report earnings that day after the market closed. The steady run-up was in anticipation of the earnings announcement, and now traders were taking profits and getting out of the stock in case of a negative reaction to the earnings results. Its not difficult to avoid being lazy at option spread trading, but it does require more effort than many traders want to make. You need to spend time getting to know your option spread trading market, and to know the stocks that are on your watch list. Research. Know why a position is moving, and always remember to check basic information of the position. Once youre in a position, be alert. Watch the market, check for news, and monitor the positions behaviour during the day. If you know events that are coming for the company, you can anticipate changes in your positions direction, and be prepared to act according to your option spread trading system. Always, always trade with a option spread trading system. If you dont have an option spread trading system, there is no way that you can be consistent enough to reap the rewards of the market. If you find yourself not taking these actions regularly, you need to seriously reconsider how you approach option spread trading. However, if you find you simply cant focus on your trades on a specific day, consider whether you are being influenced by outside events. If you're sick, emotional, or cant properly focus due to outside events, you shouldnt trade. The reason is simple. If you trade when you're not feeling well, physically or emotionally, you won't be able to trade well, and you will lose money. At the very least, you'll be too distracted to trade successfully. Knowing when not to get involved in option spread trading is an important form of discipline you must learn. This discipline is also necessary on days when the market is so directionless and choppy that no amount of option spread trading is going to go anywhere. You should try to be in good enough touch with your emotions that you can recognize when youll be unable to focus properly. It's also healthy to get away from the market for a day or two, or even a few weeks occasionally. The time away can help you regain any energy and enthusiasm for option spread trading that may have been worn down by the demands of trading over time, and may also provide you with a reminder of why you started option spread trading in the first place.
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