By James Kupe
If your options trading system doesn’t consider some basic rules of technical analysis, you could be missing a lot of profitable options trades. A basic understanding of technical analysis will help you remove some of the guess work out of trading. That’s because you won’t be fighting the trend whenever you place your trades. The simple fact is that if the market is making higher tops and bottoms on a chart, you want to take advantage of that. As traders, we need every piece of help we can get, and riding a persistent trend is one of the biggest legs up we could ask for.
But if your options trading system ignores the trend of the market, it going to make it more difficult to make money consistently without actively managing your positions on a regular basis. You can also enter additional positions in the direction of the trend as the price of the underlying goes up or down, with a higher chance of them turning out to be profitable. By compounding your profits with the trend like this, you have lower risk than if you ignore where the market is going. In trading, the trend is always your friend, so for most traders, that’s the way you want to bias your positions.
So if an options trading system that uses technical analysis as one of it’s signals is a good idea, will it help you to make money on every trade? No, because there isn’t a system or tool works every time in every market – there are just too many variables. Every trader and trading system has losses because there’s no way to know exactly what the market will do. But if you can read and understand what a price chart is telling you. you’ll be able to make trades based on market direction in addition to your other analysis.
But since most people are way too busy these days, and don’t really have the time to learn the options strategies you need to understand, as well as technical analysis, what are your options? Well you can cut down the learning curve by simply finding a successful trader and doing what they do. If you don’t already have a profitable options trading system, let somebody else spend the money and time it takes to develop one that makes money. Then subscribe to their service and let the system do the work for you. All you have to do is follow the trades as they come up, and you can cut down on your workload by at least 90%.
A profitable options trading system that helps you to trade the big, profitable trends, can be worth thousands of dollars to you every year. To find out what it takes to put one together, visit OptionsTradingExperts.com And this article will show you another way to take years off your options trading education