Develop a Profitable Trading Strategy
There are several profitable trading strategies for small risk traders, larger profit traders and long term investors.
Regardless of your level of experience and your chosen trading style, you must keep your eye on the target and that is to have a many winning trades.
You can sell options and have a high probability of profit and low risk. In this post we present you a profitable trading strategy. It integrates Risk management principles are integrated in the form of 12 Rules. Follow these rules to increase your opportunity for successful trading.
Are you ready to trade? Do you have your profitable trading strategy ready. Have you trade on paper for while to see if you plan succeed. Do you have confidence that your plans works? Can you follow your rules without hesitation? Trading in the markets is a game. The real pros are prepared and they take their profits from the rest of the crowd. The majority of them are lacking a plan. They don’t have a profitable trading strategy and therefore they give their money away through costly mistakes.
Twelve Rules For Profitable Trading Strategy
When you are trading you need a profitable trading strategy, so that in times of trouble you know what to do. And in others times that you continue to trade in the same way with the same risk. Below are 12 rules of a very low risk strategy plan to help you trade safely and consistently.
- Get educated in investing options. TastyTrade is a good place to start.
- Pay attention to the economy and the overall stock market today
- Make a watch list of 50 stocks which are very liquid.
- Select high probability trades
- limit the risk on each investment to no more than 2% of your total portfolio value.
- Select a proper strategy with right probability of success.
- Choose stock options out of different sectors
- Select options with 25 to 55 days to go to expiration
- Select only trades which ties up a small capital
- Choose at least 5 underlying.
- Trade small and trade often
- Take profit before 50% of your maximum profit
Profitable trading is the goal for all traders. It doesn’t matter what their trading style is. Sadly, many people do not have a profitable trading strategy. They don’t get profitable because they are not educated and don’t trade consistently according their plan. Some people take to much risk in a trade and got wiped.
If you want to be profitable you need to have a profitable trading strategy that will provide you with foundational rules. The plan helps you to achieve consistently positive, profitable, and low risk results. The more consistent you are in following the above 12 rules , the more consistent you will be in growing the value of your stock portfolio.
Read more about How to build your own trading Plan