Options Trading – The Best Way to Earn Excellent Returns

Posted on admin No Comments

Investing a portion of your salary is a sensible thing to do. While it is tantalizing to spend all your earnings in buying new things, take a rational decision to save money. Everything is unstable in this day and age, and saving some money can prove to be your one of the wisest moves. Once you have gathered a considerable amount of money through savings, you can turn your focus on using that money to earn some healthy returns. Yes, it is possible to earn excellent returns from money you made through saving. How? The safest way is by making careful investment in ASX options trading. Options trading in Australia has a number of benefits.

Options Trading – The Best Way to Earn Excellent ReturnsOne notable benefit of options trading in Australia is that you can invest in it with a small capital. As a matter of fact, most investors favour to invest in ASX options only because of their requirement of small capital, low risk, and good returns. As an investor, you can garner excellent profits by purchasing shares below market price and selling (writing) them above market price.

Another big advantage of ASX options is that unlike other types of assets, they offer excellent flexibility to investors. Whether the share price goes down, up or sideway, with proper ASX options advice, investors can cover their portfolio or book profit.

With ASX options, you can also build and spread out your portfolio. By spreading out or diversifying the portfolio, investors will be able to buy and sell shares, as well as be able to hedge against market uncertainties. Just like any other investment, there are some risks associated with options trading. With a good ASX options advice to create sensible options trading strategies, however, the risks that associate with options can be minimised.

Find an experienced options trading advisor with the help of the internet. Professional advisors, through their various income strategies, can help maximise your profits. They have ample knowledge and understanding about the Australian share market. They can help you solve your issues or answer questions about your investment. Finally, by teaming up with an experienced ASX advisor, you will be able to eliminate the speculation with taking investment decisions.

As for your part, you should absorb yourself in different resources relating to this form of investment as well as strategies such as collars options and covered calls that you can exercise in your favour. Once you are familiarised, confident, and have selected a proper trading strategy, you have to try to keep yourself at the top of the game by staying in sync with the current market developments. Try to invest on your own with the help of useful online resources and literatures. Alternatively, you can opt for Australia option education, which can give you deep insight about securities.

Whether you want to invest in ASX options by first gaining insight on them or simply with the help of an expert ASX options advice, the professionals at Total Options can help. Total Options is a collaboration of vastly experienced ASX advisors. They provide excellent advice on a range of ASX options trading strategies. In addition to professional advice, the professional at Total Options also provide ASX options education that gives investors a valuable knowledge on options trading in Australia.

Visit their website www.totaloptions.com.au to know more about them.

What is The Most Consistent, Profitable Options Trading Strategy?

Posted on admin No Comments

Out of various options trading strategies that are available on ASX, how do you decide which one will yield good returns? When you explore various investing forums, you will find numerous different opinions; it only makes thing hard to find out the right trading strategy. Some experts employ a rigid academic approach in order to analyse risk and profitability while others soWhat is The Most Consistent, Profitable Options Trading Strategy?rt to a more flexible approach. One fact, however, remains—the primary reason these investors utilise options is because they want to earn healthy returns which ordinary stock trading strategy cannot yield. With the strange gyration of the Australian stock market in the last few years, many investors have started to understand the ineffectiveness of strategies like “buy and hold”, and have been searching for more conservative, profitable trading strategies.

Is Options Trading in Australia Profitable?

Many investing forums will have you believe that options are highly risky and dangerous. The fact is that for the sheer scale of profit, ASX options trading cannot be beaten. The magnitude of the potential gain offered by ASX options is enormous. For a small amount of investment, you have the ability to control large blocks of stock, and can garner excellent profits from a move in the favourable direction. The downside is that options also have the ability to wreak your portfolio, if you are employing a trading strategy that does not address the risks of the particular strategy. In short, the simple answer to the above question is yes; options trading in Australia can be profitable, but it can be risky as well in some situations.

Is there a consistently profitable strategy for trading options?

Most traders new to options trading are simply introduced to the concepts of buying calls or puts. While these concepts are easy to understand and implement, the fact is that, in order to be successful with options trading, you should have excellent technical analysis skills that allow you to calculate the direction as well as magnitude of any market moves. This options strategy indeed the largest potential for profit, but the fact is that such potential is often not achieved. From one single large loss, it often requires several good trades to recover. Therefore, while the buying calls and puts strategy has the greatest potential for profit, it is difficult to achieve that potential on a frequent or consistent basis.

Selling strategies

As per our experience, the most profitable options strategy involves not buying, but selling options. Selling puts or credit spreads is more profitable over the long term than any other approach. The magnitude of the profit is less than other strategies, but consistency of profit is possible with this strategy. The notable advantage of this strategy is that the analysis requirements for selling credit spreads or selling puts is not as rigid as the requirements for other strategies. The degree of risk is also comparatively lower at every level. With an excellent trading plan, which also includes a nice exit strategy, selling options can be less risky and more profitable than most stock trading strategies.

If you are thinking about options trading in Australia, you will need to understand different strategies and create a sturdy trading plan in order to yield excellent profits with minimised risks. Partner with us to learn how to do this. Follow the link in order to contact us http://totaloptions.com.au/

Important Criteria for Selecting the Best Stocks on Which to Write Covered Calls

Posted on admin No Comments

Writing covered call is one of the most popular strategies that many expert traders as well as traders new to options trading use to generate income. The strategy is popular for two reasons:

  1. It is a conservative strategy
  2. It is easy to understand and trade

For those who are unfamiliar with the covered call strategy, it works in the following manner. For every 100 shares of a particular stock that you already own, you can sell someone the right (no obligation) to buy those shares from you at a certain fixed price (strike price) before an expiration date. The amount that you get from writing (selling) the call is called premium.

At the expiration, if the stock ends up above the strike price, you will be obligated to give away your shares at the agreed price. If the stock ends up below the strike price, the option expires as worthless, and you will be able to retain the ownership of your stock, which you can again use to write the covered calls.

While covered call writing is a straightforward option strategy, it does not mean it is easy to make excellent returns consistently. The strategy has two major risks:

-          When the price of the underlying stock takes a big leap, you will miss out on gains above your strike price because the buyer will exercise the option and you will have to sell at a price, which is below market price.

-          When the value of the underlying stock falls substantially, the loss from holding your stock will probably exceed the gain from the premium income.

Because of such risks, it is crucial to select a proper trade plan. Randomly selecting stocks on which to write covered calls or selecting certain stocks simply because they have high premium will probably lead to failure.

Here are two important criteria for selecting the best stocks on which to write covered calls:

Important Criteria for Selecting the Best Stocks on Which to Write Covered CallsSelect stocks with good technical. There is no need for you to become a technical analyst in order to be successful with covered call strategy, but knowing the basics of technical analysis is helpful. If you are going to be making short-term trades, it is essential to have some kind of basic understanding of technical analysis or access to some tools and resources, which can help you to determine the short to intermediate term technical health of a stock. By knowing the technical health of a stock, you can also determine its covered call suitability.

Select stocks with realistic premiums. If you are going to be writing covered calls for income, you will want to pick stocks (technically healthy) with a good amount of premium so that it be worth your while. Good premium does not mean high premium, but realistic premium. Options with very high amount of premium are dangerous ones. They have high volatility and uncertainty. No matter how big returns they yield, these types of stocks are not fit for reliably successful covered call strategies.

Covered calls strategy can be an excellent resource to generate income. However, just because it is easy to understand and to trade does not mean it is easy to execute on a consistent basis. Fortunately, there are various resources available that can help improve your covered call returns; for instance, the experienced advisers at Total Options. Covered calls Australia advisors at Total Options have the skills as well as vast experience that help them give you excellent advices that can improve the performance and returns on your covered calls. Know more about them by visiting their website http://totaloptions.com.au/

How to Play Safe with Options Trading in Australia

Posted on admin No Comments

Even though ASX option trading in Australia is commonly used financial product these days, it can be complex and highly risky in nature. On the other hand, good option trading strategies have the potential to make investing safer. ASX options are perhaps the most flexible trading securities out there and are also exceptional and versatile products, which investors, both novice and expert, can use to scale down risk and beef up profits.

How to Play Safe with Options Trading in Australia

Hazards with Options Trading

Greed – It is the biggest threat, which is entirely human in origin and is not inherently associated with options trading. Many people begin to invest in ASX options simply because they see huge profit in them and dream of “getting rich quickly.” Of course, there are huge profits and chances of getting rich quickly with options trading, but right trading strategies are essential for that. Unfortunately, sentiments of greed often tempt people to forsake trading strategies and begin gambling.

Trading on Margin – Selling ASX options entails providing a margin, just in case if a trade becomes a loser. Oftentimes, this margin condition does not equal the total cost that an investor has to bear should his or her trade gets trashed (which can happen pretty swiftly). This could without doubt, leave the investor in debt to his or her broker.

Loss of Investment Capital –For investors who have invested in shares and stocks, a slump in the market can set them back a small percentage, which usually is below 10% (unless if the market crashes seriously). During options trading, despite trading significantly smaller amounts of money, it is possible to lose 100% of the amount that the investors have put into the trade.

How to Play Safe with Options Trading

Adhere to a Trading Plan – First create a good trading plan through study and research, and hone it by practicing using a stock market simulator (paper trading). During paper trading, make sure that you have traded for a number of times so that you are able to experience several trades going against you—it is the best way that helps you discover how to read the signs of danger. Finally, adhere to your trading plan.

Proper Technical Analysis – Over analysis often results in a bad trade. The fundamentals for technical analysis for options trading in Australia can be different from those of stocks. Additionally, each options trading strategy features its own set of analysis techniques. Once you have opted for a good strategy, find out exactly which kind of analysis is called for, and stick with that.

Moderate Capital Allocation – Do not over allocate your capital. Most ASX options advisors advise that you do not commit anything in excess of 2% of your funds to any trade. Adhering to this advice makes it possible to take in a number of losses while still able to retain some trading power. If you write (sell) options, it is wise to leave about 15-20% of your funds readily available. It will allow you to “buy” yourself out of a bad trade just before it becomes a substantial margin liability.

Options trading in Australia offers a number of rewards that a wise investor can exploit. At the least, they offer investors an easy way of lowering the buying price of a share, or of hedging against loss. Options are often a source of secure, consistent revenue. Before diving into options trading, find out about various strategies, ensure to implement the proper technical analysis, and do not be inspired by greed.

If you want expert ASX options advice or want to learn about options trading in Australia, get in touch with experienced and professional advisors at Total Options.

How Covered Calls are Beneficial

Posted on admin No Comments

How Covered Calls are Beneficial

Writing covered calls can be an excellent strategy to increase investment income. It is a conservative option trading strategy whereby investors write (sell) call options against the holding of the underlying shares. Using the covered calls strategy, the investors get to earn a premium by writing (selling) calls. At the same time, they also get to enjoy all the benefits of underlying share ownership, such as voting rights and dividends. To understand how a covered call is beneficial, look at the following scenarios.

Before looking at the scenarios, let us first set up a situation.

The Situation

Suppose the shares of ABC Company are trading at $15. So you purchased 500 ABC shares for $7,500 ($15 x 500). Now you decide to employ a covered call strategy. So by employing a covered call strategy, you sell someone the right to purchase your ABC shares for $15.50 for the few days for a premium of $1. This means that you are selling a call (1 call equals 100 shares) with a strike price of $15.50 and a premium of $1. Your transaction and cash flow will be:

Your Transaction

Your Cash Flow

You buy 500 shares of ABC for $15

- $7,500

You sell 5 calls (each for 100 shares) of ABC at $15.50 for $1 premium

+ $500

 So your initial investment is $7,000 ($7,500 – $500).

Now let us look at the different scenarios that could happen at the call expiration day.

Scenario 1

At the expiration day, the share remains unchanged at $15. Your calls will expire worthless because why should anybody buy the shares for $15.50 if they are available in the market for $15. Now your transaction and cash flow will be:

Your Transaction

Your Cash Flow

You purchased the 500 shares of ABC for $15

- $7,500

You kept the premium of 500 shares (500 x $1)

+ $500

You sell 500 shares of ABC for $15 (expire day value)

+ $7,500

 So at the end, you still made $500. How? Well, your initial investment was $7,000 ($7,500 for 500 shares less $500 premium on covered calls) and you sold your investment for $7,500 (500 shares x $15 (share price at expiration date)).  That gives you a profit of $500 on your initial investment or say, just over 7% return. This was just without any stock movement. Let us look at scenario 2 where the share price increases.

Scenario 2

At the expiration day, the share price increased to $16. You are being “called” from the owner of the options you sold—you are obliged to sell your ABC shares at 15.50 (your strike price). Ok, now let us again look at the return:

Your Transaction

Your Cash Flow

You purchased the 500 shares of ABC for $15

- $7,500

You kept the premium of 500 shares (500 x $1)

+ $500

You sell 500 shares of ABC for $15.50 (expire day value)

+ $7,750

This results in a profit of $750…your initial purchase price $7,000 (premium included) minus sales price $7,750. It is almost 10.7% return on investment.

What if the share price drops? Well, let us look at scenario 3 for that.

Scenario 3

At the expiration day, the share price dropped to $14.50 So now your return will look like:

Your Transaction

Your Cash Flow

You purchased the 500 shares of ABC for $15

- $7,500

You kept the premium of 500 shares (500 x $1)

+ $500

You sell 500 shares of ABC for $14.50 (expire day value)

+ $7,250

 Adding up the above figures, you still make $250 profit, even though the price of your shares dropped. You will keep on making profit as long as the share price remains above $14.

Looking at the above three scenarios, opting for covered call strategy is not a bad idea at all. Further, if you have an expert covered calls advice, you can substantially increase your investment income. If you want the best covered calls advice in Australia, then get in touch with Total Options. They have a vast experience in options trading in Australia. They can also educate you on how options trading and covered calls work in Australia.

Options Trading in Australia – The Best Way to Earn Healthy Returns

Posted on admin No Comments

ASX

Who doesn’t want to earn healthy returns? Everyone likes to see his or her money multiply. Opening a savings account and depositing money in it will ensure steady returns, in the form of interest, but it is a slow form of earning returns. Besides, the returns are not too significant. Starting a business, any sort of business, will yield decent returns, but it requires considerable capital to get started. Careful investment in real estate will also yield good returns, but again, it needs huge capital. So what is the best possible way to earn healthy returns without spending a fortune? The answer is quite simple…invest in the options trading in Australia.

Australian Securities Exchange, the ASX, is one of the top-10 exchange groups in the world. Its average daily turnover is comparable to the Deutsche Boerse, London Stock Exchange, and New York Stock Exchange. It offers a variety of trading products and services, including shares, futures, warrants, and several others that would surely help earn healthy returns. Each of these products and services has their own pros and cons, but pros of one specific product, the “ASX Option,” easily outweigh its cons. Let us look at the pros of this particular ASX product.

First thing to note is that option trading does not require big capital. One can begin options trading with low capital. Many seasoned investors invest in options because of their high returns and low risks. These investors can reap excellent profits by buying shares at prices lower than the current market and selling them at prices higher than the current market.

Another benefit of options is that, unlike other ASX products and services, they offer an excellent flexibility to the investors. With a proper ASX options advice, investors can insure their portfolio or book profit irrespective of whether the price of share goes up or goes down.

ASX options also offer a way to build and diversify the portfolio. With portfolio diversification, an investor can yield higher returns with less risk. Speaking of risks, there are some risks associated with options trading. With the expert ASX options advice, however, the risks can be minimised.

For investors without any experience, it is advisable to work with a professional options trading advisor. An advisor, with various strategies, helps maximise profits and at the same time minimise the level of risks. Such a professional has an in-depth understanding about various ASX products and services. An advisor will promptly help answer the queries relating to an investment. By working with an expert advisor, an investor while making an investment decision will at least be able to cut the guesswork.

Investors on their part should also get acquainted with all the available ASX resources relating to options trading and strategies like covered calls and covered calls collar that they can exercise to their advantage. Once familiar, confident, and determined with the right trading strategy, the investors have to try to keep themselves on top of the game by keeping abreast with the current market developments, which could have some impact on the investment. The investors should try investing on their own with the help of useful resources and literature that are available online. If it is too complex to understand, investors can also seek Australia option education through which they can gain an easy understanding about options trading.

Total Options, a collaboration of expert and experienced options advisers in Queensland, can help investors seeking to invest in ASX options trading. They have considerable experience and extensive knowledge of various ASX products and services. Whether it is ASX options advice or Australian share market advice, they ensure that their clients are able to earn healthy returns with minimum risks. Aside from expert advice, options advisors at Total Options also provide Australia option education, which gives investors an excellent insight on options trading.

ASX Options Trading Strategies

Posted on admin No Comments

Like any other trading strategy, option trading has its risks, but the risk level can be made low, and it is more lucrative than stock trading. The best thing about options trading is it allows investors to develop a wide variety of strategies with different risk profiles.

ASX Options Trading Strategies

Many people consider option trading a risky strategy, suitable only to speculators; it is not the case though. With the proper approach or the right options trading advice, an investor can generate consistent investment income or provide insurance for his or her share portfolio. Below are some ASX options trading strategies, which may help minimise risk and yield good profits.

  • Selling Credit Spreads: – With minimum efforts, it is possible to grow your portfolio by 10 to 12 percent every month. Simplicity ensures success and, therefore, this strategy is not suitable for overactive traders or those who over analyse everything. All an investor needs to know is how to perform a simple trend analysis of the market, and on the group of certain selected stocks. This credit spread strategy is profitable and it is easy to implement.

 

  • Selling Covered Calls: – If an investor already owns a stock, then he or she can reduce the cost of that stock effectively by writing (selling) covered calls on that specific stock every month. Besides, if the market is flat or down, selling covered calls may yield excellent investment income. One great thing about covered calls is that a covered call writer retains voting and dividend rights on the underlying stock.

 

  • Buying and selling “Deep-in-the-money” options: – This is an excellent option trading strategy. It enables investors to buy stocks effectively at about half price and, therefore, double their profit. Because the investors’ trades are all short term, they are not bothered about dividends or other aspects about buying and holding stocks. They, however, do benefit as the price movement of the stock precisely matches the price movement of the option they purchased.

 

  • Complex strategies: – Various complex strategies, such as collars, butterflies, strangles, and several others can reduce risks and help yield high profit. The only downside of such strategies is that they are all expensive in terms of brokerage fees or the high cost of an option itself.

 

Selecting the best option trading strategy is easy if the right information is available. While above strategies may seem difficult to understand, especially to the novice investors, they certainly can help generate consistent investment income or at least reduce options trading risks. Alternatively, investors can also team up with professional advisors who can provide an expert ASX options advice. Along with Australian share market advice, professional advisors, like at Total Options, can also provide option education, which helps investors gain deep insight about how option trading in Australia works.

To get in touch with professional option trading advisors at Total Options, just follow this link http://totaloptions.com.au/

Choosing the Right Adviser for Options Trading in Australia

Posted on admin No Comments

If you decide to invest your money in ASX options trading, one vital decision you need to take is to choose a reliable advisor.

To trade in the share market, you may already be utilizing the services of a broker. However, if your broker gives advice, in addition to share market advice, on derivatives such as options, it is obligatory they be qualified to advise on such a derivative.

invest your money in ASX options trading

The requirements of option traders are not same as to those of traders who just deal in share trading. Option trading in Australia requires more frequent monitoring than equity trading because of the added risks affiliated with it. You have to be confident that your ASX options advisor delivers the level of service that you require.

Different types of broker

Options’ trading in Australia is carried out through three different types of broker. They are

  • Full service brokers – Such brokers offer you advice as well as research and other services like option education.
  • Discount brokers – These brokers do not offer advice, but they just carry out instructions to either buy or sell. You can give them instruction over the internet or just by a telephone call.
  • A combination of full service and discount brokers – Such brokers will execute trade service while also offering limited other services.

You should choose a broker as per your trading experience, your knowledge in options trading, your confidence in trading, and time.

Qualifications of an ASX options adviser

An options adviser, to give advice relating to derivatives transactions, needs to be accredited by Australian Securities Exchange. The design of the accreditation program is such that it makes advisers capable of giving expert advice and other services on ASX derivatives. ASX specifies two levels of accreditation—Level 1 or Level 2.

A Level 1 accreditation advisor can give advices on

  • Exercising warrants
  • Writing covered call options
  • Taking options
  • Selling options to close on taken position

A Level 2 accreditation advisor can give advices on

  • Taking or writing LEPOs (Low Exercise Price Options)
  • Writing options
  • Multi-leg option strategies

To become a Level 2 accreditation holder, a candidate must first achieve Level 1 accreditation.

Commission Structure

Commissions the brokers charge may vary and they can be

  • A flat fee on a per transaction basis
  • A Percentage basis where a broker charges a certain percent commission on the gross value of the transaction
  • A combination of a flat fee and percentage basis where a broker will charge a flat fee for transactions of a certain value, and thereafter will charge on a percentage basis

In case if you happen to be an experienced options trader, doing research and price monitoring on your own, you may simply need a broker to carry out your orders. For such service, you can pay a little commission. If you are amateur or new to Australian stock market, you need to have a professional and experienced options adviser work for you and forego the cheap commission option.

Selecting the right adviser

You will first need to contact several options advisers in order to find out the details about the following aspects

  • Their investment philosophy
  • The services they offer
  • The commission they charge, and on what basis
  • The size of investments they handle

It is advisable to meet the potential adviser face-to-face before making your decision to choose them. With your potential adviser, you should feel comfortable, and you should also have the confidence that they will offer the kind of service you need. A good adviser not only provides the right advice but educates their clients, as well. If you are in Queensland, professional and experienced option advisers at Total Options are the best people to contact with, and begin your trading career.

ASX Options Trading – The Best Way To Invest Your Savings

Posted on admin No Comments

Investing some proportion of your salary or earnings is the wise thing to do. Even though it is tempting to spend all your salary and earnings shopping and purchasing new things, make a rational decision to save some money, and at the same time, be profitable. In this day and age, when everything is volatile, saving money can prove to be your smartest move. Once you have enough money in your savings account, you can shift your attention of making that savings earn good returns for you. However, how can you make your savings generate good returns? Well, the best way to start is by investing your savings in ASX options trading, which has several benefits.

One of the most significant benefits of ASX options is that you can begin investing in them without having a big capital. In fact, many investors prefer to invest in options only because of their low risks and high returns. As an investor, you can reap good profits by buying shares below current market value and selling them above current market value.

Another benefit of options is that they offer great flexibility to investors in contrast to other types of assets. With expert ASX options advice, you can insure your portfolio or book profit regardless of whether the share price goes up or goes down.

Options are also an excellent way to build and diversify your portfolio. With diversified portfolio, you can buy and sell shares, as well as use options to hedge against current market volatility. Like any other investment option, there are risks associated with options. However, with proper ASX options advice to form good options trading strategies, the risks associated with options can be minimised.

With the help of the internet or through recommendation, find a reputable and reliable options trading advisor. Such advisors, through various income strategies, help maximise your profits with the minimum level of risks. They are professional and have a complete understanding about the Australian Securities Exchange. They also promptly help answer issues or questions relating to your investment. Finally, and most importantly, by getting help from an expert advisor, you will at least be able to eliminate the guesswork when making investment decisions.

On your part, you should engross yourself in all the available resources pertaining to this form of investment as well as strategies like covered calls and collars options that you can exercise to your advantage. Once you are well acquainted, confident, and have chosen the right trading strategy, you have to try to keep yourself on top of the game by staying in harmony with the latest market developments, which can have some influence on your investment. Try investing by yourself through useful resources and literature. Best, you can also go for Australia option education through which you can gain better understanding about securities.

Whether you want to invest in options with the help of an expert advice or you want to invest in options by first gaining a complete insight on them, the Total Options can help you. Total Options, based in Queensland, is a collaboration of professional and experienced option advisers. They provide expert advice on a diverse range of option trading strategies. Along with expert advice, Total Options also provide option education that gives investors a valuable insight on options trading in Australia.

Practical Trading Strategies That Lay A Good Foundation For A Long Trading Career

Posted on admin No Comments

There’s a bounty of trading strategies out there and new trading enthusiasts are developing their own in hope of pushing the industry further. These are all fantastic developments, but long-time trading professionals claim that these trading strategies are only fully effective if people know how to support them with practical life strategies.

 

For example, it’s crucial to recognise that a trader has to have the right mindset or psychological makeup to make sound trading tactics work. They need to fully understand the principles behind these strategies by doing their homework, getting background information, and performing other such tasks for correct application that would yield target results. Likewise, they need to be able to trade without letting their emotions, or things like their family circumstances, affect their trading judgment. If a trader fails to acknowledge the importance of having the right psyche for trading, not only will the activity be frustrating, but it will also be impossible to create a career out of it.

 

Another practical strategy that’s highly recommended by seasoned traders is to develop focus. Since it’s so easy to do other things while trading, a lot of traders fail to go the extra distance in making sure that they have thoroughly studied their options and the moves to make. Also an issue is the desire to try all the strategies available at once – not only will their understanding of the strengths of these strategies be compromised, but the final trading call will likely be the result of a confused process as well. The key is to focus on the goal and that one established, trusted path of getting there.

 

Third is to simplify the process. So many traders insist on complicating what they need to do when strategies have already been defined clearly, and the steps have been laid out in an organised fashion. Experts have drawn the process up; they have tried it and proven its efficacy, so there’s no need to deviate from it and improvise especially if you have not yet tried it before. So much time can be wasted trying to figure out what else needs to be done, when traders can simply do something that’s been proven effective, and benefit from it already.

 

And the last is to work on your “timing.” When you make the trading call, how you organise your day so you can cater to other things that may demand your time, which hours of the day are most productive for you – these all pertain to the value of timing in trading. The great thing about trading is that it will allow you to do other things, and with the rise of advanced technology used for it, it has become so much easier and more convenient to do. However, it’s crucial to truly understand the time and set a schedule for trading so it will not rule your life. A lot of traders tend to let the activity take hours, which they could be dedicating to their families and other responsibilities — but with a set schedule for trading, work-life balance can be maintained.