Set it and forget it option trading


This path is fraught with lagging indicators and oscillators and conventional technical analysis information that leads to high risk, low reward trading and investing. Second, you must have the discipline to follow your rule based strategy. Before you stop reading this piece and throw it into your fireplace because it is so negative, sit tight and read on, help is on the way…. I have been trading Stocks, Futures, Forex, and Options for many years and being around new traders at Online Trading Academy, I see so many people come into the program not having the two most important pieces of the trading puzzle mentioned above.

Two of the trades were profitable and one was a loss, all on the same day last week. Early in the morning, I simply marked off the demand and supply levels as that is where banks are most likely buying and selling and I want to buy or sell there as well. Understand that the laws of supply and demand ensure that the seller who sells after a decline in price and at price levels where demand exceeds supply will most often lose so we use our rule based strategy to make sure we are there to take the other side of that trade and buy from the ill-informed seller.

Next, when price rallies to our pre-determined supply level retail prices , I want to sell short but the key question for your understanding is this, who am I selling to? We are selling to the trader who is making the same two mistakes every consistent losing buyer and seller of anything makes.

First they are buying after a big rally in price, mistake number one. Second, they are buying at a price level where the chart is suggesting, supply exceeds demand. Why would someone buy at that price level? They would buy because they are conditioned to buy when the news is good, a solid uptrend is underway, and simply because the basic human brain is wired to buy when everyone else is buying Sheep.

I first identified the supply level, put my lines on the chart, and then planned the trade. Notice how price arrived to the level. The rally that preceded my entry was a healthy and obvious uptrend. The information contained above may have been prepared by independent third parties contracted by Nadex. In addition to the disclaimer below, the material on this page is for informational and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument on Nadex or elsewhere.

Please note, exchange fees may not be included in all examples provided. View the current Nadex fee schedule. Nadex accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representations or warranties are given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk and any trading decisions that you make are solely your responsibility.

Trading on Nadex involves financial risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results. No representations or warranties are given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk and any trading decisions that you make are solely your responsibility.

Trading on Nadex involves financial risk and may not be appropriate for all investors. Past performance is not necessarily indicative of future results. Nadex contracts are based on underlying asset classes including forex, stock index futures, commodity futures, cryptocurrencies, and economic events.

Trading can be volatile and investors risk losing their investment on any given transaction. However, the design of Nadex contracts ensures investors cannot lose more than the cost to enter the transaction.

Nadex is subject to U. Fill out our online application in just a few minutes.