Top Four Strategies for Beginners in Trading Options

Top Four Strategies for Beginners in Trading Options

July 26, 2017

For Forex traders, some Trading Option strategies are probably more accessible and more familiar; In reality, many Forex trading strategies utilize in Trading Options too. If the terms are unfamiliar to you, we recommend learning basic principles of technical analysis in financial markets, mainly Forex. Table of Contents1 Trading Line Strategy in Trading Options2 Important Economic News3 […]

For Forex traders, some Trading Option strategies are probably more accessible and more familiar; In reality, many Forex trading strategies utilize in Trading Options too. If the terms are unfamiliar to you, we recommend learning basic principles of technical analysis in financial markets, mainly Forex.

Trading Line Strategy in Trading Options

Trading market prices start to react by hitting a resistance line. For example, the trade should be performed when the price hit the resistance line.

If the tradeline shows the direction of market bullish, it is time to buy (call), and if the trade line is downward, the suitable deal will be sold (put).

You can see this strategy in the below picture more precisely.

Important Economic News

Sometimes the central bank’s policy of countries is apparent, and economists experts can easily guess increase or decrease of economic indicators. For example, when it comes to Eurozone interest rates rises probably a few hours after the announcement, Euro prices will go higher, and prior to the release, it is an excellent time to buy (call).

beginners in options trading

Support and Resistance (short-term Hedge)

Sometimes financial markets, fluctuate back and forth between two different prices; At the bottom of this area can proceed to buy (call) and at the upper area can make a sell (put). The advantage of these methods is that you can find opportunities in the financial markets for this system. The important thing that you probably in the area of prices called market range will be able to earn good profits but when the prices were out of range, must wait for new opportunity to built new range of formation.

Martingale in A Short Period of Time

This strategy is usually not recommended, but many options traders like. There are several ways to do martingale on Trading options but a low-risk method as follows: Considers the fixed point in a reasonably quiet currency market, as the euro to dollar and then if reduction of more than ten pips in less than 10 minutes. At that point try to buy(call)as much as 5% of your capital, and if any decrease in this market as much as ten pips again, try to buy 10% of your money (call). If this further decline of 10 pips again, increases the volume of its purchases to 20% of initial capital. An increase of over 20% does not recommend.

Related Posts

Trading Options and Forex Trading: Understanding the Difference

Trading Options and Forex Trading: Understanding the Difference

When you search on the internet Trading Options vs Forex Trading, you will find a lot of sources on comparing Options Trading Vs Forex Trading. Here we want to rewrite and censure them. Table of Contents1 Forex and Options Trading Have Become Very Popular During Last Three Years!2 Trading Comparison Forex and Options Trading3 Which One […]

A Brief Description About Trading Options Strategies

A Brief Description About Trading Options Strategies

Increase your knowledge about Trading Options Strategies Simple Strategies in Forex and Trading Options, There is a difference between Forex market and Trading Options market so you should not use your Forex strategies in Trading Options trading. In Forex market, you should prognosticate the market direction plus movement pips. So there is no expiry time. […]

Top Tips for Beginner Options Traders

Top Tips for Beginner Options Traders

In a real world, we are somehow busy which lack of time to read and study about everything so everyone requires some advice in personal life or job. Here I want to write a few useful pieces of advice for Options trading, Therefore, I hope they can be useful. Table of Contents1 Understand and Learn […]

The Biggest Misunderstanding in Forex and Options Trading.

The Biggest Misunderstanding in Forex and Options Trading.

Misunderstanding in Forex and Options Trading. When the traders start trading Options, they are not capable of making a profit well. They are able to predict Forex market well, although they fail to be sure in Options trading. Even though scalper traders are not able to earn a profit in Options trading, they predict market […]

Add your Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Comments

Top Four Strategies for Beginners in Trading Options • CloseOption Official Blog