How do I become a prolific options trader?
- December 7, 2017
- Posted by: PurpleTrades
- Category: Stock Market
To be a master in Option trading, one needs to understand few terms associated with it.
Its no surprise that 70% of Indian traders trade only in option because of its amazing returns and very small capital requirements.
I also love options and my 90% of trades are only in options.
If you are trading in Indian market, then trust me options is the best tool to trade.
To begin with, I would strongly suggest you to learn TECHNICAL ANALYSIS.
learn charts and skills to identify trends, learn to identify Supports and resistance, and then learn to identify trends and generate entry and exit signals. since options are volatile, you should keep a strict Stoploss and target on every trade you take.
Also a trader should know risk reward ratio in trading AT THE MONEY strike and OUT OF THE MONEY strike.
Never buy In the money strike because its expensive and gives same returns as at the money.
Understand premium decay conceps and learn to make money by short selling options i.e Option writing .
There are advanced strategies like STRADDLE and STRANGLE, which gives assured returns during major events irrespective of direction of market, you can master that too to get assured income.
The best combination to be a sound option trader is to trade in option according to technical analysis.