Below we are going to look at a strategy that has the odds in your favour and maximizes your chances of success when selling premium. Sell Greed and buy fear. Option premiums become high when a market is driven by greed and fear - these set ups provide you woth a chance to trade and build big profits from your forex trading signals.
The two indicators below are great for spotting contrary trades and are explained more fully in our other articles. This is the set up you are looking for: Next, look for commercial buying of bear markets and selling of bull markets via the commitment of traders report. Use your charts to enter and sell options behind the next level of support or resistance. Get time on your side When you are buying option premium, you want lots of time on your side when you are selling go for the opposite.
Time decay at the end of the life of an option kills it quickly, so use it to your advantage and sell options with short times to expiry. This is not a game for amateurs If you want to do a forex trading strategy that includes selling currency options - keep the following in mind: The above is a simple strategy and it works and it needs courage to do — Selling options is a big boys game and you need to be well capitalized, have strict money management and be prepared to trade against the consensus and the majority of forex traders.
What Does A Broker Do? Tips and Advice on Candlestick Patterns in a Bear Market. What Is Bond Market? Introduction to Day Trading. Trading In Future Options. Brokers and Online Trading: An Introduction to Options and Futures Trading. Forex Trading with Fibonacci. Day Trading - Want to Try it? Then Say Goodbye to Your Equity.
Reduce Your Portfolio Risk. Forex Trading Signals — Are they really Useful? Forex signal system trading. Healthy Body , Healthy Trading Mind. Taking Advantage of Insider Trading. More on SD Editorials?
Hobbies for the Family. Gifts for loved ones. Back to SD Editorials Mainpage. The New World Currency , by Xperior. Cash and Travellers Cheques , by marshc Currency Trading - An Introduction , by whistler.More...