“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
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