Ignore the title, I was just trying to get my post through
Anyways, I have been doing a lot of studying on options lately, and it seems that in almost every thread there is one person (or more) who say's something along the lines of "gambling and bankruptcy, yada-yada" and of course we have all seen the screenshots over at WSB. My question is how does one "blow up" an account, and what do I need to know to prevent that?
Here are topics I have already studied and am aware of:
* Position sizing/determine risk
* Risk to reward ratio
* Stop loss/take profit (cut losses early if trending against me)
* Journal and analyze trades
* Diversification
* Have a trading plan
* Limit my amount of trades per day
* Limit the amount of capital I am trading with
* Liquidity
* Controlling emotions and impulses
* Spreads
* Options theory (how it works/the greeks/different types of trades/etc)
I haven't looked much into slippage yet, but It's next on the list.
So, is there something I am missing? I wouldn't want to blow my account up.