6 Trading Skills to be Successful (Pt 3 of 6) 

Tom Gentile

Posted in Education

By: Tom Gentile on April 11th, 2022 • 2 mins read

Read the second part to the series here.

Skill #3 Execute with Style

In a trade, applying the right trading system and determining the proper trading strategy is critical to one’s success.

Equally important is finding a suitable broker to execute your trade. Once you have found a broker and opened your account, it’s time to concentrate on the trading.

So Many Choices When it Comes to Trading Options

When it comes to executing trades, thanks to new online trading platforms and the ability to hold orders through computer source code there are a great many choices as to where to go to trade.

In fact, the ability to tie an option or an option spread to a security should be found virtually everywhere you look.

I love using contingency orders on my directional trading systems. If I have a system that screams BUY the night before on the high of the day, I will place a contingency that will buy a specific option when the stock price hits my stop order.

An Effective Option Order Type: OCO (Order Cancels Order).

OCO orders are an effective way to implement your trading plan.

Essentially, OCO orders answer the ‘what if’ question. What if the price goes up? In that case, the upside order is filled, and the downside is cancelled.

What if the price goes down? Then the reverse occurs.

The nice thing about OCO orders is it covers both sides of the trade. Think about instances when you took past trades, reminding yourself that if the trade does one thing you’ll get out for a profit and if it does something else you will get out for a loss.

Mapping out the trade and placing orders well in advance of the actual exit will help you avoid spoiling the trade as it matures.

KEY TIP:  Choose a Broker who is Focused on Your Best Interests

Make sure the broker trading platform is suitable to your needs. Fees can still be considered, but nowadays they pale in comparison to when I started out, but still worth assessing.