Here are 9 steps that can be followed up, you can start today to increase your option trade. 1. Learn and Master of Fundamental Trade Options It is very important for you to understand the basics of options before you […]
Here are 9 steps that can be followed up, you can start today to increase your option trade.
1. Learn and Master of Fundamental Trade Options
It is very important for you to understand the basics of options before you explore and study trading middle to advanced options. This is the order in life. That is the reason why we learn how to do mathematics and a basic reduction before we enter the division and multiplication.
You need to know everything about “putting” and “calls” – from how they work and when it’s best to use it. It also includes knowing everything related to them such as expiration dates where they are found in the basic option table. Skimming on the basics to enter more advanced trade is just gambling.
2. Read books about trade options
Technically, they don’t have to be all about trading options because there are overlapping in each investment book. The aim is to study various approaches to trade markets. You will learn about things that you haven’t known before and you will even be able to improve your original trading strategy.
One big takeaway from reading books is that you can also learn more about hidden trade factors that you don’t see every day such as psychological investors or market psychology. Did you know that this psychology is the reason why technical analysis is there?
3. Streamline your technical analysis
If you look at 6+ more technical indicators and use some of the concepts of technical analysis of the concept of other technical analysis, then you might do yourself.
Simply learn and use the basics such as MACD, support / resistance, trend channels, divergence / convergence, and moving averages.
4. Continue to Paper Trade
Just because you traded real money that doesn’t mean you have to stop learning and try various strategies. You must continue to play the market from all angles. If you are conformist market (you tend to go with trends), you can try a strategy that is not contributed. If you usually close the credit spread, try keeping one open when leggings in the Put OTM option.
Experiment and continue to tweak your strategy
One great tip is to make 2 trades identical. One on your routine account and the other on your paper trading account at the same time. Then you can make an experimental adjustment to your paper account from time to time and see how the exhibition is on Live Account. This is a great way you can test different strategies while having a base line.
5. Select the trade option you like and the kiss
A great way to increase your preferred trade is to master bread and trade butter. Learn all your ins and outs of testing historical data, testing the current conditions using paper trade, and reading about your favorite trade in the book.
When you truly understand the ins and outs of your trading, you will be better able to recognize the situation and market that your trade will develop. In turn, you will receive a higher probability of success and profit.
The key is to stick to basic trading such as iron condos or credit spread. There is no continued layered trade.
6. Stay on your trading package
All successful traders have trade plans. This means, they have a strategy to enter trade, make adjustments, and exit positions based on certain events. Successful traders do not make random decisions. All they do is calculated, measured, and analyzed.
You can make a trade formula that is easy to follow based on technical analysis if you want too.
7. Wait for opportunities
This is a big problem for beginner traders. It was even a problem for me when I started trading. I will have several shares on my observation list that I want to enter, but know it’s not the right time. And when I’m not looking for stock taking off. On several occasions, I really chased the stock that finally opposed me.
These types of situations are hurt in 2 ways: 1) your ego dent and 2) your portfol dent