Caution for Retail Traders with LONG Positions | Option Chain Indicator

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Like an octopus, the share market moves in all directions, and no one has ever been able to fathom how exactly it works. It is not possible to tame or time the market. The market experts have accepted this fact, and do trades with such realization.

What you do is important; but how you do, what you do is more important. This is true of an investor who is in the thick of buying and selling the shares. Trading psychology has an important role to play in profitable trading.

The trader and the investor pin their hopes in the happenings in the same place-the share market-but their expectations from the market are different. Trading and investing are not similar.

How to be a successful investor? Half the credit goes to knowledgeable research on the share that you intend to bring to your portfolio and half to the magical touch! The subject of research can be explained but what is this magical touch?

Buying options can be a great way to make huge returns in the stock market. But they can also work against you in many different ways. Selling options, however can give you the same ability to make a good return, but with less risk.

The P variable is a special data array identifier that can be used to reference any indicator or price plot. Although it’s called the ‘P’ variable it doesn’t work like a variable. If you are new to MetaStock formula then this might seem complex or confusing but once you ‘get it’ you’ll understand why it’s used by so many trading professionals.

Once you study the procedures for buying and selling of shares, the next step is how to avoid confusion, while brisk trading process goes in the market. To possess the procedural knowledge and the actual implementation of the procedures-the right procedure at the right time-is a difficult art.

A stop loss order in itself is neither good nor bad. What matters is how and when you use it. If you use stop loss orders arbitrarily, instead of booking profits, you will book losses. Historically speaking, such orders have saved many investors from suffering huge losses.

The prime objective of any investor is to earn as much profits as possible and as fast as possible. Each investor thinks that his approach is unique and the trades must end in profits.

Most people believe that options trading is risky. However, we believe that the risk lies in the strategies used while placing the options trades. If you use basic risk management strategies options trading can be less risky than trading stocks. Read on to find out more …