Hello Members,
Based on your trade education and experience level, you may want to start at the beginning or skip ahead to learn courses you need to forward your trading education.
The market environment changes. 75% of the time the market is choppy with little volatility, (VIX less than or equal to 20). This level of market volatility is a good environment for selling Credit Spreads and Iron Condors to earn steady income weekly and monthly.
However, when the market volatility is high (VIX is greater than 20), the conditions can present unusual amounts of risk. The VIX is not measured by one stock. It’s measured as the entire stock market.
Higher volatility creates better opportunities to make directional trades utilizing different option strategies including buying and selling common stock. Be aware of the market conditions while trading and adapt to the environment by using the different option strategies to increase your probabilities.
Knowing what large market institutions are trading and following their money, is beneficial to retail traders. Institutions perform scalp, intraday and swing trades, just like retail traders. They just do it with a lot more money. Their trades are changing throughout the day just like ours. Look at data flow throughout the day to see if the tides are changing and make the appropriate adjustments. Things can change quickly in the market based on news events, politics, earnings, etc.
Any trade is dependent on you and your game plan. Regardless if you’re using data analytics or following your favorite twitter personality, it’s important you to know that most triggers alert at support and resistance levels.
Support and resistance is the foundation of trading. Keep price triggers in mind as you get a trigger alert. Check your chart and follow basic entry guidelines to enter a trade. Have your exit plan ready to automate. Basic indicators and risk parameters will help you decide if the trade is worth risking your capital.
Breakouts and breakdowns can be identified by humans and algo alerts by a thin skinny wick from a candle crossing above or below the support or resistance level. In order to make the best entry; identify the breach of the level, and wait for the retrace bounce to enter the trade.
Having this basic foundation as the first thing that comes to your mind all the time, will be the first puzzle piece on the board, as you continue your education at Trading Made Simple.
I welcome you, and look forward to our team learning and trading together, step by step.
Happy Trading!
