Posted in
Education
By: Tom Gentile
on April 7th, 2022
Read the first part to this series here.
Skill #2 Matching Winning Strategies with Winning Systems
It requires more than a winning system to be a winning trader.
Many systems are simply too volatile for the average trader. That’s where options come in. Options can be a key ingredient to winning in the world of trading.
Take Alphabet, (formerly known as Google), for instance. Can you imagine trading this stock on a regular basis? It could cost you a bundle, even with a great system.
In a case like this, trading options can be a great alternative to stock trading strategies.
Trading Options Instead of the Underlying Stock
This approach could bring both a lower cost and a lower associated risk.
Price is but just one benefit to trading options. The time element is also important, along with recognizing the best option to buy in terms of time value.
Professional Options Traders also look at volatility. Knowing when an option is expensive or cheap can lean the odds of success greatly in your favor.
KEY TIP: Use an Options Analysis Software
Using an options analysis software such as my online/internet-based software www.tomsoptiontools.com can help you determine not only the price and time of options to buy, but also whether the options in question are expensive, low cost or priced fairly.
www.tomsoptiontools.com can also scan the markets for trades that fir your trading system, and also help you select appropriate trading strategies and better manage your trades.
Also consider my app Toms Option Tools. It has lists found by clicking the icon Morning Reports. These lists show options based on a variety of characteristics.
Here are a couple of examples:
App: Toms Option Tools
Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.
Disclaimers
Stock and options trading has large potential rewards, but also large potential risk.
You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.
This is neither an offer to buy/sell/ or recommend a particular stock or option.
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.
No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
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