DAY TRADING STRATEGY

There are two types of Day Traders, Institutional, the trader who works for a large company and has more funds and contacts at his disposal and Individual Day Trader who works on his own, with his own money.

Day trading is where stock and shares are bought and sold in minutes throughout the day in the hope that as the share prices rise and fall, profits can be made. Day traders often use borrowed money on the hope that it can be paid back while making a profit for themselves.

 

Day trading is a term that makes us think of a money making exercise. Day trading is a high risk gamble but you can have success if you know exactly what you are doing as this is the way lots of companies make their money.  Many people have made a lot of money from day trading and others have lost a lot because they take risks and a lot of money can be lost in a very short time.

Never risk money you can't afford to lose!
 
Currency Options - A Simple Strategy for Mega Profits by Sacha Tarkovsky

Currency options if you buy them offer you unlimited profits and limited risk - that's good, but your chances of success aren't good 90% of options expire worthless.

On the other hand, if you sell options you have a 90% chance of success and if you do it correctly, then you can build huge profits over the longer term.

Below we are going to look at a strategy that has the odds in your favour and maximizes your chances of success when selling premium.

So if the chances of success are so great why don't more people sell options? This can be summed up in one word - RISK

 
  On the face of it doesn't look good taking an unlimited risk to get a limited gain, but of course if you constantly pile up small profits by collecting premium with currency options then you can make big profits - let's look at how to do this and keep the risk down.

Getting 90% + Odds On Your Side For Huge Gains

If you want to use a currency trading system based around options selling keep the two points below firmly in mind to get the odds even more on your side.

1. Sell Greed and buy fear.

Option premiums become high when a market is driven by greed and fear - these set ups provide you worth a chance to trade and build big profits from your forex trading signals.

So when markets skew a long way from the "fair value" you sell.

The two indicators below are great for spotting contrary trades and are explained more fully in our other articles.

This is the set up you are looking for:

Look for markets that are very bullish or bearish by checking the % bullish indicator and look for below 15% bullish and above 85% to isolate opportunities. Next, look for commercial buying of bear markets and selling of bull markets via the commitment of traders report.

If you are looking for day trading strategy, the following links may also be of interest to you:

 

Use your charts to enter and sell options behind the next level of support or resistance.

2. Get time on your side

When you are buying option premium, you want lots of time on your side when you are selling go for the opposite.

Time decay at the end of the life of an option kills it quickly, so use it to your advantage and sell options with short times to expiry.

This is not a game for amateurs

If you want to do a forex trading strategy that includes selling currency options - keep the following in mind:

The above is a simple strategy and it works and it needs courage to do - Selling options is a big boys game and you need to be well capitalized, have strict money management and be prepared to trade against the consensus and the majority of forex traders.

Trade with 90% odds of success

If you can adopt the right mindset, spot the opportunities driven by greed and fear and have the courage to trade them by selling currency options, you can trade with 90% odds of success on your side and pile up huge profits.

About the Author: GRAB 3 X FREE TRADER & FREE TRADER PROFITS NEWSLETTER

On all aspects of becoming a profitable trader including features, downloads and some critical FREE Trader PDF's and more FREE Forex Education visit our website at http://www.net-planet.org/index.html

 
 
Try searching on the Internet for "day trading strategy" and you will be amazed just how many pages are on offer. Try it for yourself by hitting the search button below!