advanced option trading stratergies Some common advanced options trading strategies. are: Long Straddle and Strangle: Buying a call and put with the same expiration date and different strike prices. Iron Condor and Iron Butterfly: Combining a bear call spread and a bull put spread.
Which strategy is best for option trading?
The long straddle is the best strategy for option trading that consists of purchasing an In-The-Money call and putting options with the same underlying asset, strike price, and expiration date. Profit potential is infinite in this method, while loss potential is limited.
Also called the 1-3-2 butterfly spread, it is a common variation if the butterfly spread involving buying one option at a lower strike, selling three at a middle strike, and buying two at a higher strike. This advanced options trading strategy offers more flexibility.
Analysis
basic to advance trading techniques ??Here's how to make your first trade:
Open and fund your live account.
After careful analysis of the market, select your opportunity.
'Buy' if you think that market's price will rise, or 'sell' if you think it'll fall.
Select your deal size, ie the number of CFD contracts.
Take steps to manage your risk.
The 5-3-1 strategy is especially helpful for new traders who may be overwhelmed by the dozens of currency pairs available and the 24-7 nature of the market. The numbers five, three, and one stand for: Five currency pairs to learn and trade. Three strategies to become an expert on and use with your trades.
It is a high-stakes game where many are lured by the promise of quick riches but ultimately face harsh realities. One of the harsh realities of trading is the “Rule of 90,” which suggests that 90% of new traders lose 90% of their starting capital within 90 days of their first trade.
Database Trading part 4 The United Nations Comtrade database aggregates detailed global annual and monthly trade statistics by product and trading partner for use by governments, academia, research institutes, and enterprises.
SQL remains a fundamental tool for querying and managing data. SQL's simplicity and power make it accessible to both beginners and experts. In trading systems, SQL enables efficient data retrieval and manipulation. Users can write SQL queries to analyze market trends and execute trading strategies
Oracle is the most widely used database management system written in assembly languages C, C++, and Java. It is also considered the most popular database because of its cost-optimizing and high-performing features. It supports SQL (Structured Query Language) to interact with the database
what is the use of adx in trading ?The ADX quantifies trend strength by measuring directional movement over a given time frame. It provides traders with specific numbers (from 0 to 100) that represent strong or weak price trends. Traders can simply refer to the numbers to quickly assess the strength of a trend.
Key takeaways. Average directional index (ADX) is a short-term chart indicator. It can be used to help you evaluate the market or an investment's strength. ADX currently suggests the short-term momentum behind stocks may be strong, with a caveat.
Average Directional Index or ADX is a technical analysis indicator that can determine if a market trend is strong or weak. It provides values between 0 to 100 for the same. A value between 0-25 indicates a weak trend. A value between 25-50 indicates a fairly strong trend.
what is Algo-trading and how to do it ?For instance, the algorithm would buy Microsoft (MSFT) shares if the current price is lower than the 20-day moving average and sell if the price exceeds the 20-day moving average. Algorithmic trading strategies can be as simple as this example, or they can be much more complex.
So, is algo trading profitable? Yes, it is possible, but there's a price attached that doesn't involve money! You must have all the knowledge to work with. It includes a fail-proof plan and risk management to protect against dangers.
How do I start trading in Algo?
How to Get Started with Algo Trading: A Step-by-Step Guide ...
Step 1: Understand the Basics. ...
Step 2: Choose Your Asset Class. ...
Step 3: Select a Trading Platform. ...
Step 4: Learn Programming. ...
Step 5: Develop Your Trading Strategy. ...
Step 6: Backtest Your Strategy. ...
Step 7: Go Live. ...
Step 8: Continuous Monitoring and Optimisation.
What is option chain pcr ?The Put-Call Ratio (PCR) is a popular technical indicator used by investors to assess market sentiment. It is calculated by dividing the volume or open interest of put options by call options over a specific time period. A higher PCR suggests bearish sentiment, while a lower PCR indicates bullish sentiment.
The Put Call Ratio (PCR) is a popular metric traders use to gauge market sentiment. It is calculated by dividing the number of put options by the number of call options. A high PCR indicates a bearish sentiment, as more traders buy puts, expecting the market to decline
An options chain displays all available option contracts for a security, organized by expiration date and strike price. Options chains typically show each contract's bid price, ask price, volume, open interest, and implied volatility.
What is rsi ? how to use it ?The relative strength index (RSI) is an indicator used in technical analysis to determine overbought and oversold conditions, which provides traders with buy and sell signals (when to enter and exit positions). Values above 70 indicate overbought conditions and those below 30 indicate oversold conditions.
To use the RSI indicator, check if the value is above 70 to show an asset is overbought, or below 30 to show it is oversold. Traders can use these signals to find possible trading opportunities.
Successful trades often occur when the RSI crosses above 30 (indicating a buy signal) or below 70 (indicating a sell signal). Adjusting the RSI period to 9 can make it more sensitive to price changes and be suitable for more active trading strategies.
what is resistance and support and how to use it in trading ?Support occurs at the point where a downtrend is expected to pause due to a concentration of demand. Resistance occurs at the point where an uptrend is expected to pause due to a concentration of supply. Support and resistance areas can be identified on charts using trendlines and moving averages
Using Support and Resistance After a Breakout
Old Resistance Becomes New Support – If the price breaks above resistance, that resistance level may now act as support.
Old Support Becomes New Resistance – If the price breaks below support, that support level may now act as resistance
TOP-10 Support and Resistance Indicators
Fibonacci Levels.
Support and Resistance Zones Indicator.
Linear Regression.
Margin Zones Indicator.
Trend Lines.
Fair Value Gaps.
Stacked Imbalance Indicator.
Psychological Levels.
Database trading part 2Trading data is a sub-category of financial market data. It provides real-time information about stock and market prices as well as historical trends for assets such as equities, fixed-income products, currencies and derivatives.
The United Nations Comtrade database aggregates detailed global annual and monthly trade statistics by product and trading partner for use by governments, academia, research institutes, and enterprises
Licensee may not share the IBM Research DiF Dataset with any other party and is responsible for any unauthorized access or use of its copy of the DiF Dataset.” data is by trade secrets. misuse of private information depending on your country. a legal framework that protects trade secrets.
how to become the successfull trader ?The key to success is discipline—sticking to your strategy, even when the market tempts you to take a different path. That's how traders build long-term, consistent profits. The markets will tempt you with quick wins, but successful traders know that discipline is the key to lasting success
Risk management
Create a trading plan
Review your trades
Always use a stop loss
Risk only what you can afford
Access to professional trading tools
Comparing brokerage firms
Control your trading capital
Defining trading success
Develop trading techniques
Keep a trading journal
Arrange sufficient capital
Developing a risk reward ratio
Find your market
Finding a trading strategy
Stay disciplined
Emotional resilience
Gain trading experience
Mindset of a successful trader
Patience
Treat trading like a business
Technology
Adapt to the market
Adaptability
Balrampur Chini Mills Ltd.Balrampur Chini Mills Ltd.
CLASSIC REVERSAL STOCK
BUY: #BALRAMCHIN
*ENTRY : 435
*SL: 415
**TARGET: 480
SUPPORT RESPECTED!!
it has an average target of 673. The consensus estimate represents an upside of 53.97% from the last price of 437.10. View 2 reports from 1 analysts offering long-term price targets for Balrampur Chini Mills Ltd..
Future Growth
Balrampur Chini Mills is forecast to grow earnings and revenue by 17.2% and 11.1% per annum respectively. EPS is expected to grow by 15.6% per annum. Return on equity is forecast to be 14.6% in 3 years.
According to analysts, BALRAMCHIN price target is 598.78 INR with a max estimate of 715.00 INR and a min estimate of 261.00 INR. Check if this forecast comes true in a year, meanwhile watch BALRAMPUR CHINI MILLS LTD stock price chart and keep track of the current situation with BALRAMCHIN news and stock market news.
Triveni Turbine Ltd.#TRITURBINE SHOWING STRENGTH, JACKPOT CANDIDATE
TARGET - 720
ENTRY - 580
STOP LOSS - 550
TIME FRAME - MONTHLY
TECHNICALS - BULLISH
Ahead of the quarterly earnings for the December 2024 period, brokerage Motilal Oswal is bullish on the stock with a price target of Rs 830. "Despite weakness in domestic markets, Triveni Turbine posted healthy growth in revenue, profitability and order inflows in FY24
Triveni Turbine is forecast to grow earnings and revenue by 19% and 18.9% per annum respectively. EPS is expected to grow by 20.4% per annum. Return on equity is forecast to be 27.3% in 3 years.
THIS IS NOT ANY FINANCIAL ADVISE
Godfrey Phillips India LtdFuture Growth
Godfrey Phillips India is forecast to grow earnings and revenue by 25.5% and 12.7% per annum respectively. EPS is expected to grow by 25.5% per annum. Return on equity is forecast to be 20.6% in 3 years.
Consumer Defensive stocks do not always pay a dividend but as Godfrey Phillips India Ltd pays dividends to reward its shareholders. In the quarter ending September 2024, Godfrey Phillips India Ltd has declared dividend of ₹35 - translating a dividend yield of 1.75%.
Is Godfrey Phillips owned by ITC?
Godfrey Phillips India Ltd. (GPI) is a tobacco manufacturer headquartered in India. It is now a part of Modi Enterprises.
Nitiraj engineers Ltd20% Upper Circuit: Stock jumps after reporting 32,450% QoQ net profit growth in Q3
The shares of a micro cap Electronic stock engaged in manufacturing and selling of Electronic Weighing Scales, Currency Counting Machines, Taxi Fare Meters, etc hits 20 percent upper circuit after posting strong Q3 results with Net Profits surging 204 percent YoY and 32,450 percent QoQ.
keep an eye on it...
What is adx and how to use it ?The ADX indicator is designed to quantify the strength of a trend, regardless of its direction. It does this by measuring the degree of price movement within a given period. The ADX values range from 0 to 100.
The traditional setting for the ADX indicator is 14 time periods, but analysts have commonly used the ADX with settings as low as 7 or as high as 30. Lower settings will make the average directional index respond more quickly to price movement but tend to generate more false signals.
ADX below 20: The market is currently not trending.
ADX crosses above 20: A new trend is emerging.
ADX between 20 and 40: This is considered as a confirmation of an emerging trend.
ADX above 40: The trend is very strong.
ADX crosses 50: the trend is extremely strong.
advanced pcr tradingHowever, no PCR can be considered ideal, but usually, a PCR below 0.7 is typically viewed as a strong bullish sentiment while a PCR more than 1 is usually considered as a strong bearish sentiment.
The Put-Call Ratio (PCR) is a popular technical indicator used by investors to assess market sentiment. It is calculated by dividing the volume or open interest of put options by call options over a specific time period. A higher PCR suggests bearish sentiment, while a lower PCR indicates bullish sentiment.
It can additionally be used for individual securities by looking at the volume of puts and calls on a security over a determined time period. A high PCR is indicative of bearish sentiment while a low PCR is indicative of bullish sentiment.
learning Advance Option trading You can get started trading options by opening an account, choosing to buy or sell puts or calls, and choosing an appropriate strike price and timeframe. Generally speaking, call buyers and put sellers profit when the underlying stock rises in value. Put buyers and call sellers profit when it falls.
There are some essentials of advanced options trading and these are: Spreads: These involve buying and selling options contracts with different strike prices or expiration dates on the same underlying asset. By combining these contracts, you create a defined risk and reward profile
Straddle is considered one of the best Option Trading Strategies for Indian Market. A Long Straddle is possibly one of the easiest market-neutral trading strategies to execute. The direction of the market's movement after it has been applied has no bearing on profit and loss.
What are the most important things to remember while trading ?It is a high-stakes game where many are lured by the promise of quick riches but ultimately face harsh realities. One of the harsh realities of trading is the “Rule of 90,” which suggests that 90% of new traders lose 90% of their starting capital within 90 days of their first trade.
Stop loss
Plan the trade
Trading strategy
Control your trading capital
Correlated stocks
Discipline
Risk management
Arrange sufficient capital
Determine market conditions
Learn trading discipline
Market risk
Patience
Profits occur sporadically
Start small
Study the markets
Understand securities
Avoid overtrading
Avoid penny stocks
Broker requirements
Consider rebalancing portfolio occasionally
Consider your risk tolerance
Cut losses with limit orders
Diversification
Do not average your trades
how to make a rich portfolio in stock market ?Building wealth: 9 strategies for growing your portfolio
Pick an investment strategy that suits your goals. ...
Set clear investment goals. ...
Consider investing over the long-term. ...
Market timing. ...
Diversification. ...
Invest in growth sectors. ...
Take advantage of compound interest. ...
Rebalance your investment portfolio
So, 90/10, with 90% in the Vanguard 500 Index Fund and 10% in short-term government bonds, is his recommendation for his wife's trust. By the way, his wife is in her late 70s, and Warren will presumably be leaving her many millions of dollars
What is option trading and how it can be done profitably ?Options traders can profit by being option buyers or option writers. Options allow for potential profit during volatile times, regardless of which direction the market is moving. This is possible because you can use an options trading platform to trade in anticipation of market appreciation or depreciation
Also called the 1-3-2 butterfly spread, it is a common variation if the butterfly spread involving buying one option at a lower strike, selling three at a middle strike, and buying two at a higher strike. This advanced options trading strategy offers more flexibility.
If you think the stock price will stay stable: sell a call option or sell a put option. If you think the stock price will go down: buy a put option, sell a call option. Frederick says to think of options like an insurance policy: You don't get car insurance hoping that you crash your car.
What is the use of ADX in trading and why it is important ?The ADX quantifies trend strength by measuring directional movement over a given time frame. It provides traders with specific numbers (from 0 to 100) that represent strong or weak price trends. Traders can simply refer to the numbers to quickly assess the strength of a trend.
The ADX identifies a strong trend when the ADX is over 25 and a weak trend when the ADX is below 20. Crossovers of the -DI and +DI lines can be used to generate trade signals. For example, if the +DI line crosses above the -DI line and the ADX is above 20, or ideally above 25, then that is a potential signal to buy.
The ADX Indicator actually works best when combined with other technical indicators. One of the best combinations is with the Relative Strength Index, or RSI. Because the ADX measures the intensity of the trend the RSI can help with entries and exits by giving a time based component to the trend
What is database trading and it is been done ?Reset restore all settings to the default values Done. Close Modal Dialog. End of dialog window. 3. Database trading, often referred to as *algorithmic trading* or *quantitative trading*, involves using computer algorithms to make automated trading decisions based on a large amount of data
A database is an electronically stored, systematic collection of data. It can contain any type of data, including words, numbers, images, videos, and files. You can use software called a database management system (DBMS) to store, retrieve, and edit data.
Databases are used to store and manage large amounts of structured and unstructured data, and they can be used to support a wide range of activities, including data storage, data analysis, and data management. They are used in a variety of settings, including business, scientific, and government organizations.
what is support and resistance and how to use it ?The support and resistance (S&R) are specific price points on a chart expected to attract the maximum amount of either buying or selling. The support price is a price at which one can expect more buyers than sellers. Likewise, the resistance price is a price at which one can expect more sellers than buyers.
Using Support and Resistance After a Breakout
Old Resistance Becomes New Support – If the price breaks above resistance, that resistance level may now act as support.
Old Support Becomes New Resistance – If the price breaks below support, that support level may now act as resistance.
Support and resistance are key concepts in technical analysis. They refer to price levels acting as barriers, guiding market direction. These levels help traders make informed decisions on entry/exit points.