Online options trading trading academy powerball numbers
You can probably surmise what I think about moving average crossovers…. Here is another picture of the same pair and time frame, but instead I marked in a couple of demand zones and a supply zone.
If you are new to Online Trading Academy, our core strategy tells us to buy in what we believe is institutional demand and to sell in institutional supply. Using our strategy, a short trade could have been taken at. A long trade could have been taken at. I want to mention one last tidbit to increase your odds in trading. Push back a bit from the screen you are reading this on.
Now, notice how we have a relatively clear sideways channel over these couple of months of trading. Ever play the high-low game with a deck of cards, where you pull out a card and make a bet on if the next card will be higher or lower than the first?
If you pull a 3, what are the odds that the next card will be higher than a 3? Pretty good, I would guess! If you pull a King, what are the odds that the next card will be lower than the King? Now, if you pull a 9…now what? Pretty high odds that the next card trade! To more fully understand how these Odds Enhancers can help you in your trading, see you in class! Disclaimer This newsletter is written for educational purposes only.
By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever. To my amazement, I have not found too many profitable options traders in India. This made me look further into the strategies being employed by those traders to see if there is something they are doing wrong and if I could offer a solution.
One such mistake that novice traders make in the Indian option markets is that they try to trade deep out of the money options in order to buy cheap premium. This strategy is often referred to as a lottery ticket as the payouts can be great, but the odds of winning are extremely slim.
When trading, we want consistent wins in any market we trade. As of this writing, the Nifty has retreated from the price level. A trader who wanted to take advantage of the potential bearish drop could buy puts.
They would profit from a drop in price as well as an increase in volatility by doing this. On the date I am writing this article, the open interest looked like this:. Looking at the high open interest, it appears that many traders are buying their lottery tickets at a strike price of on the Nifty.
But is this the smartest thing to do? Most traders buy this option because of the low premium cost. Looking at the different options, the cost to buy the put was only Rs. This is a lot cheaper than the puts Rs. But is it the best trade? Most option traders ignore the Greeks in trading. The Greeks are measurements of risk in options trading. They can also be used to gauge potential profitability in the trade. Assuming the Nifty is currently trading at if the Nifty were to move to at the expiration of 28 th August, the trader who bought the put would profit about Rs.
Not bad for an initial investment of only Rs. But wait, holding to expiration would also cost you time value. You would lose about Rs. Buying the put costs more, but the larger Delta compensates for the loss in time value.