Video For New TradersTrading psychology is the emotional component of an investor's decision-making process, which may help explain why some decisions appear more rational than others. Trading psychology is characterized primarily by the influence of both greed and fear. Greed drives decisions that might be too risky.
The London session accounts for about 34% of the daily forex trading volume, making it the most active session. London is one of the world's financial hubs, with the largest financial institutions and banks engaging in huge trading activities in the city. These naturally impact the movements of world currencies.
Fundamental-analysis
Support and ResistanceTOP-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.
The basic strategy is to buy at the support level and sell at the resistance level, recognizing that these are zones of potential demand and supply changes. How does resistance work?
Database TradingIt comes with limited downside risk, making it a safer investment than futures or margin trading. In addition, option trading can be more complex than other financial instruments, as it requires traders to have a good understanding of the underlying asset and market conditions.
Yes, you can make a lot of money, or lose a lot of money, trading options. Options provide a leveraged payoff on some underlying asset, such a stock. Below are the basics and some points to be aware of. The prices of options are based on the movement of some underlying asset, often stocks.
Management and PsychologyTrading Psychology simply refers to the feelings and emotions of a trader experiences and the associated actions the trader takes as a result. Just like in any other aspect of life, understanding how our mind works can improve our ability to trade better, take more informed, rational decisions and calculated risk.
How do I master my trading psychology?
What is Trading Psychology? ...
1) Create a Trading Plan. ...
2) Take Regular Breaks. ...
3) Don't Quit Your Day Job. ...
4) Accept That You Will Lose. ...
5) Practice, Practice, Practice. ...
6) Use a Take Profit and a Stop Loss. ...
7) Backtest Your Trading Strategy.
More items...
Database Part 2Options are a type of contract that gives the buyer the right to buy or sell a security at a specified price at some point in the future. An option holder is essentially paying a premium for the right to buy or sell the security within a certain time frame.
Option trading is largely a skill requiring knowledge of market trends, strategies, and risk management techniques. While there is an element of uncertainty in the markets, successful traders rely on analysis, planning, and discipline rather than luck.
PCR TradingThe 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.
However, 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.
option TradingOption trading is largely a skill requiring knowledge of market trends, strategies, and risk management techniques. While there is an element of uncertainty in the markets, successful traders rely on analysis, planning, and discipline rather than luck.
If a person trades for excitement or social proofing reasons, rather than in a methodical way, they are likely trading in a gambling style. If a person trades only to win, they are likely gambling. Traders with a "must-win" attitude will often fail to recognize a losing trade and exit their positions.
Database option TradingOptions are a type of contract that gives the buyer the right to buy or sell a security at a specified price at some point in the future. An option holder is essentially paying a premium for the right to buy or sell the security within a certain time frame.
Options are highly sensitive to market volatility. Significant price swings can lead to substantial gains or losses. A trader might buy a put option expecting a stock to drop. If the stock instead surges in price due to unforeseen events, the value of the put option plummets.
RSI Divergence Low RSI levels, typically below 30 (red line), indicate oversold conditions—generating a potential buy signal. Conversely, high RSI levels, typically above 70 (green line), indicate overbought conditions—generating a potential sell signal.
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.
Technical AnalysisTechnical analysis is a means of examining and predicting price movements in the financial markets, by using historical price charts and market statistics. It is based on the idea that if a trader can identify previous market patterns, they can form a fairly accurate prediction of future price trajectories.
Technical analysis is a strategy for predicting movement in the stock market, or other securities markets, that relies on information from short periods of time. For this reason, day traders or other short-term traders often use technical analysis.
Trading RoadmapOptions are highly sensitive to market volatility. Significant price swings can lead to substantial gains or losses. A trader might buy a put option expecting a stock to drop. If the stock instead surges in price due to unforeseen events, the value of the put option plummets.
Market Volatility: The futures and options markets are known for their high volatility, meaning prices can change rapidly and unpredictably. If you happen to be on the wrong side of one of these price swings, you can lose a tremendous amount of money in a very short amount of time.
MACD Divergence TradingMoving average convergence/divergence (MACD) is a technical indicator to help investors identify entry points for buying or selling. The MACD line is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. The signal line is a nine-period EMA of the MACD line.
The indicator is calculated by subtracting a 26-period Exponential Moving Average from the 12-period moving average. There is also a histogram available on the indicator which can also be used as a divergence indicator. As a result, you will then see the MACD line, which shows as an indicator below the price chart.
Option Trading Options are a type of contract that gives the buyer the right to buy or sell a security at a specified price at some point in the future. An option holder is essentially paying a premium for the right to buy or sell the security within a certain time frame.
When options are better. Options can be a better choice when you want to limit risk to a certain amount. Options can allow you to earn a stock-like return while investing less money, so they can be a way to limit your risk within certain bounds. Options can be a useful strategy when you're an advanced investor.
Advanced Swing TradingThe 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.
However, 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.
USD/CHF Poised for a Bullish Breakout: Path to Parity Bullish Scenario 🚀📈
1. Breakout Above the EMA (200) 🔺:
If the price closes above the 200-week EMA (0.9082), it could confirm a long-term bullish trend reversal.
A strong push may target key levels like 0.9500 and eventually 1.0000 (parity) 🎯, as shown by the projection arrow.
2. RSI Support 💪:
The RSI above 50 indicates that buyers are gaining momentum.
If RSI trends toward 70, it signals even stronger bullish momentum ✅📊.
3. Higher Highs and Higher Lows 📶:
The chart is forming higher highs and higher lows, a classic signal of an uptrend.
This pattern supports a move toward higher price levels 🚀.
🔥 Key Takeaway: A breakout above the EMA could spark a powerful rally, with parity (1.0000) as a major psychological target.
Database Option Trading Options are highly sensitive to market volatility. Significant price swings can lead to substantial gains or losses. A trader might buy a put option expecting a stock to drop. If the stock instead surges in price due to unforeseen events, the value of the put option plummets.
Call options give buyers the right, but not the obligation, to buy a stock for a fixed price, on or before some date. Buying call options on a stock can be more profitable — but also more risky in percentage-change terms — than buying that stock itself.
Option TradingOptions are a type of contract that gives the buyer the right to buy or sell a security at a specified price at some point in the future. An option holder is essentially paying a premium for the right to buy or sell the security within a certain time frame.
When options are better. Options can be a better choice when you want to limit risk to a certain amount. Options can allow you to earn a stock-like return while investing less money, so they can be a way to limit your risk within certain bounds. Options can be a useful strategy when you're an advanced investor.
Option Trading with Option chainOption chains provide specific data related to options contracts, including strike prices, expiration dates, implied volatility, and open interest. Traders use this data to construct options strategies, manage risk, and profit from price movements in the underlying asset.
Top options trading strategies
Covered call. A covered call is a popular options strategy where you own a stock and simultaneously sell a call option on the same stock. ...
Married put. ...
Bull call spread. ...
Bear put spread. ...
Protective collar. ...
Long straddle. ...
Long strangle. ...
Long call butterfly spread.
Advance Option Trading Option trading is largely a skill requiring knowledge of market trends, strategies, and risk management techniques. While there is an element of uncertainty in the markets, successful traders rely on analysis, planning, and discipline rather than luck.18 Dec 2024
Even though successful options trading can be immensely profitable and financially liberating, you need to set your life up so you can afford to get good at trading without worrying about money and stress. It is possible, but trading is not a way to get rich quickly or without effort.
Data TradingMarket data is a broad category of information about the financial markets, consisting of essential details like price, bid/ask quotes, trading volume, trading period (high, low, open, or closed), etc.
Options trading is a type of financial trading that allows investors to buy or sell the right to purchase or sell an underlying asset at a fixed price, at a future date. Options trading operates on the basis that the buyer has the option to exercise the contract but is not under any obligation to do so.
PCR / Put Call RatioA PCR greater than 1 indicates that more put options are being traded than call options, suggesting a bearish market sentiment. Investors may expect a market decline or hedge against potential losses.
PCR ratio = 1500/2000. = 0.75. Points to be noted: A PCR value below 1 is indicative of the fact that more Call options are being purchased relative to the Put options which signals that investors are anticipating a bullish outlook for the markets ahead.
Contrarian indicator: Can signal potential market reversals with extreme values of the put/call ratio. An example of this is a put/call ratio of 2.5. This can suggest a very bearish sentiment while a put/call ratio such as 0.25, could indicate an extreme bullish sentiment.
Support and Resistance 'Support' and 'resistance' are terms for two respective levels on a price chart that appear to limit the market's range of movement. The support level is where the price regularly stops falling and bounces back up, while the resistance level is where the price normally stops rising and dips back down.
The basic strategy is to buy at the support level and sell at the resistance level, recognizing that these are zones of potential demand and supply changes. How does resistance work?
TradingOne of the most effective ways of studying is to carve space out between sessions. If you break up your study load over several days, you'll retain information far more readily than if you crammed it into your head during one long session.
Day trading and swing trading are two very different approaches to short-term investing. If you're more interested in an exciting, higher-risk environment that requires greater attention, day trading is better for you. Otherwise, the slower, more methodical path of swing trading might be a better option.