tailieunhanh - PROFIT WITH OPTIONS CHAPTER 4

4 SYSTEM TRADING. LEARNING OBJECTIVES: The material in this chapter helps you to: • Choose the trading system that is right for you. • Realize the importance of following your system’s rules— always. • Determine the amount of money you need to start shortterm trading. | 4 SYSTEM TRADING Learning Objectives The material in this chapter helps you to Choose the trading system that is right for you. Realize the importance of following your system s rules always. Determine the amount of money you need to start shortterm trading. Understand what makes the market move. See and react to index arbitrage at work near or on index option expiration day. Compute index fair value. Much has been written in recent years about day traders. In fact day trading has been around for ages but the most common practice has been to day-trade futures because they have large leverage. In addition some futures contracts are volatile enough that their daily trading range is wide so that a day trader has a reasonable chance to make or lose some money. The kind of day 123 124 SYSTEM TRADING trading that the media fell in love with was day trading of stocks a realm that used to be reserved strictly for professional traders who paid no commissions. However with the advent of Internet stocks volatility it appears to many novice traders that they can make money day-trading these stocks. History will almost certainly prove that to be false for the vast majority of these day traders. In any case if you are going to day trade you need a system you can t just say I think I m going to buy Microsoft today. That is almost certainly the road to ruin. A trading system is a methodology that has well-defined rules for entry and exit plus perhaps some rules for taking partial profits. There are hundreds perhaps thousands of systems that are profitable. If you are going to trade any of them you need to pick ones that are compatible with your trading style. The discussion in this chapter will show you how to pick the system that s best for you and use it profitably. CHOOSING A SYSTEM In selecting a trading system you should ask these and perhaps even more questions Does it work in the markets you like to trade Some systems work much better in certain markets than others for .

TÀI LIỆU LIÊN QUAN
crossorigin="anonymous">
Đã phát hiện trình chặn quảng cáo AdBlock
Trang web này phụ thuộc vào doanh thu từ số lần hiển thị quảng cáo để tồn tại. Vui lòng tắt trình chặn quảng cáo của bạn hoặc tạm dừng tính năng chặn quảng cáo cho trang web này.