They have the resilience to come back from early losses and account blow ups. They focus on what really matters in trading success. They have developed a trading method that fits their own personality. They trade with an edge. The harder they work at trading the luckier they get. They do the homework to develop
Read through the rules every day before the trading session begins. It doesn’t take more than three minutes to read through them. Think of the exercise as praying reminding you how to conduct yourself throughout the trading session. 1)THE MARKET PAYS YOU TO BE DISCIPLINED. Trading with discipline will put more money in your pocket
Options trading can be risky but also lucrative for investors who understand how it works and how to do it effectively in the market. If you’re a beginner where options trading is concerned, a good place to start is with learning the basics. If you’ve been trading options for a while, on the other hand,
An option’s premium has two main components: intrinsic value and time value. Intrinsic Value (Calls) Options Pricing A call option is in-the-money when the underlying security’s price is higher than the strike price. Intrinsic Value (Puts) A put option is in-the-money if the underlying security’s price is less than the strike price. Only in-the-money options
This strategy involves selling a call option and a put option with the same expiration and strike price. Description A short straddle is a combination of writing uncovered calls (bearish) and writing uncovered puts (bullish), both with the same strike price and expiration. Together, they produce a position that predicts a narrow trading range for
“This strategy consists of buying a call option and a put option with the same strike price and expiration.” Description A long straddle is a combination of buying a call and buying a put, both with the same strike price and expiration. Together, they produce a position that should profit if the stock makes a
Don’t trust others opinions – It’s your money at stake, not theirs. Do your own analysis, regardless of the information source. Don’t break your rules – You made them for tough situations, just like the one you’re probably in right now. Don’t try to get even – Trading is never a game of catch-up. Every
The science of trend allows you to build systematic rules to play these repeating formations and avoid the chase: Forget the news, remember the chart. You’re not smart enough to know how news will affect price. The chart already knows the news is coming. Buy at support, sell at resistance. Everyone sees the same thing
Risk is there in every business and proper risk management is road to success for any business. Equity trading is a lucrative business which is very rewarding but this reward is not risk free, as theoretically and practically risk free trade does not exist. Because risk is associated with the reward, it becomes essential to
Support and resistance represent key junctures where the forces of supply and demand meet. These lines appear as thresholds to price patterns. They are the respective lines which stops the prices from decreasing or increasing. A support line refers to that level beyond which a stock’s price will not fall. It denotes that price level