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  Strategy in Trading Options2 Important Economic News3 Support and […]

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.

 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 seld (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.

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