Category Archives: Trading Strategies
Benefits of Option Trading
Option trading offers several benefits. It allows traders to control a large position with a relatively small capital. They can be used as hedges to cover losses. Traders can generate a regular income through covered calls. They provide a wide … Continue reading
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How to make big in trading with a small capital
Making significant gains in trading with a small capital is challenging but possible with the right strategies and discipline. As a beginner it is always better to trade with a small capital. This is one of the ways in which … Continue reading
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Pitfalls in System Trading …
Source: Squareoff.in Mr Kirubakaran is one of my favorite traders. I have been following him for the last decade, His blog is very informative and what I like most is the simple way in which he explains the many issues … Continue reading
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Trailing Stops – Are they useful
Trailing stop-loss orders can be beneficial for traders in certain situations, but they also come with their own risks and limitations. The primary benefit of a trailing stop-loss order is to help traders minimize potential losses by automatically adjusting the … Continue reading
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Discipline in Trading
While reading or learning about how to trade one of the points that is re-iterated again and again is ‘Discipline’. We traders are aware that in trading everything else is easy and straight forward expect maintaining discipline and controlling emotions … Continue reading
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A Simple Short Strangle Strategy
A short strangle is an options trading strategy where an investor sells both a call option and a put option with different strike prices, but with the same expiration date. The strike prices are typically out-of-the-money, meaning they are not … Continue reading
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How loan programs can help a trader …
In the futures and options trading market, there are loan programs that allow traders to borrow money to finance their trades. These loan programs are typically offered by brokerage firms and may be referred to as margin accounts or leverage … Continue reading
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How can I learn to trade in options …
Learning to trade options involves understanding the basics of options, developing a solid strategy, and gaining practical experience. Here are some steps to help you get started: Options trading involves risks, and it’s essential to approach it with a disciplined … Continue reading
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How we can improve our Option Trading
To improve option trading it requires a combination of education, practise and discipline. First understanding the basics. Basic concepts of opotions including calls, puts, expiration date, strike prices and option pricing. There are many books and online courses and educational … Continue reading
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The Risk – Reward Dilemma
The risk-reward dilemma is a fundamental concept in trading and investing, and it revolves around the trade-off between the level of risk associated with an investment or trade and the potential rewards or returns it offers. Traders and investors struggle … Continue reading
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Can we make money thru option buying? Yes and here is a simple strategy.
Yes, it is possible to make money through option buying, but it comes with its own set of risks and challenges. Options are financial derivatives that give the holder the right, but not the obligation, to buy (call option) or … Continue reading
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How to trade with Parabolic SAR
Trading with the Parabolic Stop and Reverse (SAR) indicator involves identifying potential trends and reversal points in a market. The Parabolic SAR is a technical analysis tool that helps traders determine entry and exit points by plotting dots either above … Continue reading
Trader’s Dilemma – How to overcome the resitance to place a stop loss
Overcoming resistance to placing a stop-loss order can be challenging, but it’s an important step in managing risk and protecting your investments. Here are some suggestions to help you overcome this resistance: Placing a stop-loss order is a crucial part … Continue reading
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Trader’s dilemma – How to overcome repeating same mistakes in trading
Overcoming the tendency to repeat the same mistakes in trading can be challenging but not impossible. Here are some strategies to help you break that cycle: Overcoming repeated mistakes in trading takes time, effort, and self-reflection. It’s essential to remain … Continue reading
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How to trade – steps to trading for beginners.
In trading it is challenging to guarantee a specific profit amount every day, but we can make a fair amount of returns over a period of time that is more than what we get in safe assets such as bank … Continue reading
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What are the primary factors that drive volatility trading in financial markets?
Volatility trading in financial markets is driven by a combination of several primary factors. These factors include: It’s important to note that the interplay of these factors is complex, and the relative importance of each factor can vary over time … Continue reading
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Martingale System: What It Is and How It Works in Investing
The Martingale system is a gambling strategy that has been applied to investing in various forms. While it can be tempting to try this approach, it is important to understand its limitations and potential risks. The basic principle behind the … Continue reading
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How can a trader use the information derived from studying open interest to develop effective options trading strategies?
Open interest is a useful metric for options traders that indicates the number of outstanding or open contracts in the market. It can provide insights into market sentiment and potential trading opportunities. Here are a few ways traders can use … Continue reading
An Iron Condor explained in simple terms …
An iron condor is an options trading strategy that aims to profit from a stock or index staying within a specific price range. Here’s a simple explanation: An iron condor strategy allows you to profit from a stock or index … Continue reading
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How to create a simple strategy and backtest it.
Here is a framework to develop a simple trading strategy. It’s important to note that this is a simplified strategy, and successful intraday trading requires continuous learning, practice, and adaptation. Additionally, consider testing your strategy on historical data or in … Continue reading
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Option Buying Strategy – a long straddle with a difference
Here is an interesting option buying strategy. The twist to this strategy is it is basically a straddle but with a difference that leads to more profits. The author has backtested this strategy along with the normal long straddle strategy … Continue reading
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