How to stay calm, cool and collected while options trading

Options trading in Singapore can be a great way to generate returns, provide protection or even speculate on the future direction of markets. However, it also carries significant risks and can result in major losses if not done correctly. It is, therefore, essential to remain calm, relaxed and collected at all times when trading options. Here are some excellent tips on how to do this.

Create an actionable plan

Before beginning any trading activity, you should create a clear plan outlining your strategies and goals, helping you stay focused and increase your chances of success. Make sure to include risk management rules within the plan so that you know what steps to take when things don’t go as planned.

Set realistic goals

It is essential to set realistic goals and expectations when trading options. Don’t expect to make a fortune overnight, as this is rarely achievable. Instead, focus on the long-term and building consistent returns over time.

Use limit orders

Limiting orders allows you to restrict losses and lock in gains quickly and easily, which will help you stay calm in volatile markets as you know that your position won’t move against you beyond a certain level.

Stay disciplined

To succeed with options trading, it is essential to always remain disciplined. Stick to your trading plan, and don’t make impulsive decisions based on emotions or speculation. Avoid overtrading by only entering into trades when there is a high-probability setup.

Manage stress

Options trading can be stressful at times, so it is essential to have strategies to manage any anxiety or fear. Take regular breaks from the markets and find activities that help you relax, such as yoga or spending time with your loved ones.

Stay informed

Finally, ensure you are well-informed about the markets and options trading strategies. Read educational materials and articles on options trading, attend seminars or webinars related to the subject, watch tutorials online and stay up to date with news feeds throughout the day. Doing this will give you more confidence when entering trades and help you remain calm under pressure.

What are the advantages of options trading in Singapore?

Options trading in Singapore provides several advantages to investors. Some of these include gaining access to global markets, potential tax benefits due to the country’s low tax rate, more flexibility than most other forms of investing, and leverage opportunities enabling traders to maximise potential returns on minimal capital.

Additionally, a wide range of options is available for investors in Singapore and many platforms through which they can trade them. All this makes it an attractive option for those looking to trade FX options online.

What are the risks of options trading in Singapore?

Options trading has several risks associated with it in Singapore. These include the risk of making incorrect assumptions or predictions, experiencing a lack of liquidity and significant changes in options prices due to market volatility, and the possibility of incurring significant losses due to leverage.

Additionally, legal issues, such as tax laws and margin requirements, must be considered when trading options. Investors should also know that options trading may only be suitable for some due to its complexity and high-risk nature. As such, it is essential to thoroughly review all available documentation before entering into any trades. Finally, investors should always have an exit strategy ready if things don’t go according to plan.

Why you should use a broker when trading options

Using a broker when trading options can help Singaporean investors make more informed decisions and reduce the risk of their investments. Brokers provide access to an array of research tools and market data that can be used to evaluate potential trades. They also guide complex strategies, such as spreads and straddles, which are unsuitable for all investors.

Additionally, using a broker provides access to deeper liquidity pools and better prices for options contracts than what is available on exchanges. Finally, brokers offer assistance during market stress or volatility, helping traders remain calm and focused in difficult situations.


Options trading can be highly profitable when done correctly. It is, therefore, essential to remain calm, cool and collected at all times when trading options. Doing this will help you make better decisions and minimise risks while maximising returns. By following the tips outlined above, traders should be able to confidently navigate the markets with tremendous success.

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