HOW TO BECOME A PROFITABLE OPTION TRADER
In this blog we provide 19 options trading rules. A option trader must follow trading tick for price and must clear vision how many point book in scalping for intraday trading if trade reverse than how many point stop loss book. All 19 rules of option trading make a profitable option trader. Beginner must be know all intraday option trading rules.
HOW TO BECOME A PROFITABLE OPTION TRADER
HOW TO BECOME A PROFITABLE OPTION TRADER
When it comes to options trading, capital management is necessary. Make strategies yourself to help you protect your capital and maximize your profit. In option trader must be watch carefully trading tick after that trade. If you want to trade option trading in intraday for scalping that you must your trading view clearly for your target and stoploss.
Those who want to trade with option trading should follow basic rules to maximize profit. We provide to you in this blog trading view, trading tick, intraday trading with the help of below mentioned rules. There are some rules below mentioned:
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Stop loss: When you want to execute your trade, first of all, you must determine your stop loss and fix the trade.
Trialing Stop Loss: If your trade is profitable, then trail your stop loss for a big profit.
Set Your Position Sizing: When you choose your trade based on your capital, some traders may choose to risk a fixed percentage of their capital. Never use your whole capital in a signal trade because if your trade goes negative, your loss will never recover. If you trade a lower amount, your loss will recover because you have taken another trade.
Fixed Risk Tolerance: You fixed your losses when entering a trade. This will help you determine the amount of capital with which you are comfortable taking a level of risk.
Create A Ledger Book: At the end of the day, you make a ledger book for all trades done by you, analyze all trades at your own level, and find your problem at the time of trade.
Define Your Loss Percentage: If you plan to make a trade, define your loss percentage, which is the amount of loss you have taken on your capital. Total loss is defined as 2% to 5% of your capital on the whole day, after which you close your trading if you complete your loss target.
Regularly Monitor Your Trade: When your trade executive is regular, monitor your trade from time to time and trail your stop loss if you are profitable.
Market Trends: - Always keep an eye on market trends; if the market is going up, trade up; if the market is going down, trade down; and if the market is going up, trade down.
Educate Yourself: - Update yourself from time to time for market trade, news, and any rule changes by the government because of one news story that makes a hug loss to you.
Follow Your Own Strategies: Before you buy or sell an option, make your own strategies, see charts and indicators, and then plan to execute your trade.
Be Aware At A Time Of Expiry Day: When you plan to trade on expiry day, be careful about your premium going to zero at the end of the day if the trade reverses.
Never hold your option for log-time if you have an option buyer.
Make trades on movement: If you are an option buyer, trade when big movement is seen. If you trade when there is less movement, your premium price reduces according to time.
Profitable Trade Done: If you have completed your trade with profit in the morning, you will never lose your whole profit in a day. You decide to take 80% of the profit at the end of the day and trade only 20% of the profit the whole day.
If you made a profit the previous day, never lose your whole profit the next day.
If you want to trade large quantities, hedge your position so that you minimize your risk.
17. Describe the day and time when you made a lot of profit, and accordingly, make a trade.
18 You know very well about out-of-the-money option prices moving slowly.
19 When you make any trade, you must also know various terms regarding option trading, like call option, put option, strike price, expiration date, in-the-money, out-of-the-money, premium, implied volatility, delta, Gama, theta, Vega, covered calls, bullish options strategies, and bearish options strategies.
Conclusion:
In this blog we provide 19 options trading rules. A option trader must follow trading tick for price and must clear vision how many point book in scalping for intraday trading if trade reverse than how many point stop loss book. All 19 rules of option trading make a profitable option trader. Beginner must be know all intraday option trading rules.