While we love to focus on expanding our knowledge and terminology around trading stocks, it's also important to dive into potential mistakes an investor could make while working within the market.

Dedicate a fixed percentage of your capital – not a fixed dollar amount – to each trade. Invest no more than 10% of your capital into any one trade. For option buying, reduce that to 2-5% per trade.

Trading options can be appealing for many reasons, but especially for the potential to multiply your money many times over. Options can also serve as a hedge against falling stock prices and allow ...

Here are five option trading sins to avoid at all costs — with real-life examples of what can happen when you don’t.