Thursday, January 26, 2012

News based trading

You can notice no level work if trading is based on some news. Still people make mistakes.
  1. Never go against the tide in news based trading.
  2. Do not do adventurer trading by taking put (that too if getting cheap)
  3. Avoid any trade in option if it is near expiry because of time decay factor
  4. Most of the trader simply forget that they can't manage their risk like professional by buying different call/put spread and other techniques like butterfly strategy etc
  5. Go with the tide if you can not avoid trading and that too after waiting for some time
Next time you  may got such opportunity on budget day,

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