Never trade options without a stop. Never buy options very close to expiration unless they are hedged.(just stay away from options near expiration until you get good at them). Have a trade setup that can be flexabile when trading options, by giving your self extra time(months out options), in case the trade doesn't go your way initially. Use strategies like collars, strangles, and vertical spreads when using options. Options shouldn't be traded like stocks. They should be given much more respect due too their volatility and value at risk.
Look for a trade setup with a large reward/risk value, on the weekly, daily, and intraday basis.
Be aware of breaking news, and protect yourself from catasrophic damage by having your stops placed incase something bad happens in the market.(or something good, if your on the short side)
Know why you placed a trade. You must give a valid reason for entering a trade, even though the market may be random. Obviously your reasons will be primarily technically based, but having some news is a real plus to buy or sell.
Know what sectors are leading the markets and what ones are lagging and determine which ones to be long/short.
Use indices and commodities as indicators when trading stocks.(for example, you'll want to watch the crude oil contract and the YM,NQ, when trading oil stock or the oil etf OIH.)
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