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How to Trade Options Safely

Trading options can offer flexibility and leverage, but it's important to approach it with a risk-managed mindset. To trade safely, always start by learning the basics—understand how call and put options work, what strike price and expiration mean, and how market movements affect premium. Begin with simple strategies like covered calls or cash-secured puts instead of complex multi-leg trades. Set a risk limit for each trade and never invest more than you can afford to lose. Use tools like stop-loss orders, avoid emotional trading, and always research the underlying asset. Most importantly, focus on consistency and education rather than chasing high returns quickly.