You must follow option trading rules while trading to be profitable trader.
One Chance Signals - Trading Rules
Option trading is became most popular now a days. here you can earn lots of money in a short period of time. Its true, But traders found much more difficulties in this way due to lac of knowledge or practice. There are so many things you need to keep in mind while trading. Trading is simple but not easy. I think the option trading is more difficult than stock trading but it has high risk and reward. To achieve your goal in trading here we are going to discuss some option trading rules , you can follow these.
1. Pre calculate your Profit and loss Target
To became a successful trader you need to calculate your profit and loss target before start trading. Take a notepad and do calculation according to your capital. we suggest to stop trading for the day when you reached any target either profit or loss.
2. Don't open too many trades
After achieving your pre set target , don't open many more trades to get extra profit from the market. Doing such thing can push you to be greediness. we are human beings we all have emotions.
3. Control your emotion while trading
Emotional trading is most dangerous thing. When we start taking decision based on our emotion most of the time our trade results are against us. so try to control your emotion and trade wiesely.
4. Do your own analysis
If you have a basic knowledge of candlestick patterns or market analysis do your own analysis before placing the trades. it will boost your knowledge, understanding and controls your fear. keep learning from our other posts regularly.
5. Read financial Market news and events
Always try to understood the fundamentals of markets. Read the news releases to see changes in the market. Only trade on news if you have knowledge otherwise avoid trading that time.
6. Protect your capital
In option trading business your capital plays a very important role. In short you can say that your profit depends on your capital means the bigger your capital the more money you can make. This is the fact that you can never be profitable even from big capital without Money management and Risk Management. Don't loose more than 05-10% in a day.
