Stocks Tips : Play It Cool When It Gets Hot

Stocks TipsStocks Tips. There is no other place that is more wacky and crazy than stock market. It is driven by numerous forces outside itself which can lead either to the excitement of winning dreams or the desperation of the losers. When the market gets hot, the excitement peaks up to the level where it can burn anyone in it. Therefore, it is important for you to keep cool whenever it gets hot in order to save yourself from being burnt up to ashes.
Below are five practical tips you can do to save you from burning out.

1. Stocks Tips : Do not buy underlying assets

Never buy underlyings. They change price quickly and very treacherous anytime there’s an opportunity to. Do not take this as paranoia; we do need to act very carefully in the stock market world. Act as if all the stock out there is chasing after you.

2. Stocks Tips : Do not deal with long options

Long options come along with big risk. The time will decay against you. It is really not a good move.

3. Stocks Tips : Never “leg in” or “leg out” of a spread

Taking an advantage from price swings can give you big winning. However, it is very risky, especially when market is continually declining. You can lose your buying power in a moment and leave with nothing.

4. Stocks Tips : Do not touch Delta

Delta is never good. You can minimize your delta by selling your both puts and calls. Take a slight bullish or stance.

5. Stocks Tips : Make friends with Theta

The time is on your side when you are selling short options. Profit from short options will go up every time.

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