is a very very big mistake. The expiry for any given trade can range from 30 seconds, up to a year. There are however, different types of option. To successfully trade you need to practice money management and emotional control. Enter the size of the trade or investment Decide if the value will rise or fall and place a put or call The steps above will be the same at every single broker. Halal Brokers if you are one of the growing number of Muslim traders. A Touch option is a type where the trader purchases a contract that will deliver profit if the market price of the asset purchased touches the set target price at least once before expiry. Lack of Good Trading Tools, limitations on Risk Management, cost of Losing Trades. Well, it is important to understand candlestick charts. Taking a look at a rough example, if you have a win rate of 65 that means that you will win on average 60 trades out of 100 and lose 40 on average.
But where they expect the price to go down, they can place a put trade. Will a price finish higher or lower than the current price a the time of expiry. Otherwise, a trader has to endure a drawdown if a trade takes an adverse turn in order to give it room to turn profitable. Winning/Losing Trades, this strategy relies on the trader setting a total number of wins / losses that you are willing to have in a day. So your win rate needs to be on average 54-58 to break even. The trader will set a percentage such that winning trades are always more than losing trades and hence the trader is always in the profit.