When entering the trading world, it's important to set realistic goals. Do not aim to turn $1,000 into $100,000 overnight or even within a year. While such dramatic gains are possible, they are highly unlikely and can instill poor trading habits.

Contrary to the advice found in many trading books, you should avoid setting a specific daily profit target. Aiming for a certain amount each day can lead to overtrading, forcing you into setups that aren’t valid, and making you overly emotionally attached to your money. To become a successful trader, focus solely on high-quality setups. Remember, day trading doesn't mean trading every day. By trading only the best setups, you maximize your edge, which will naturally lead to profits over time.

When it comes to risk management, avoid the common advice of using a stop loss based on a fixed percentage. This method is especially flawed in options trading, where volatility can easily trigger a 15-20% stop loss, even if the setup is still valid. Instead, set your stop losses based on the chart. For instance, if you are trading calls on a bullish falling wedge, place your stop loss below the support level. This approach requires close attention to the charts, so consider setting alerts above and below key levels to stay informed.