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The Bottom Line In the world of investing, there are a lot of securities in which you can invest your money: stocksbonds, commoditiesmutual funds, futures, options and more. Of course, there is a fee, but it takes all the management worries away. Many will invest in stocks and bonds to try to capture larger gains. And some will invest in options.
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Linkedin Too many new traders see stock options as lottery tickets, chips in a casino, or a path to getting rich quick. They are not.
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Option traders of every level tend to make the same mistakes over and over again. And the sad part is, most of these mistakes could have been easily avoided. In addition to all the other pitfalls mentioned in this site, here are five more common mistakes you need to avoid.
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The Bottom Line Many traders make the mistake of purchasing cheap options without fully understanding the risks. A cheap option is one where the absolute price is low.