TopicBinary Options Pricing and Trading
Learn - A trading system is not static. Keep your mind active by always learning. The more you study the stock market and options trading system, the more you will know and the better off you will be. If an options trading system was like a tic-tac-toe system, then we would all be wealthy. Thankfully, options trading is not as boring as a child's game. Learn something new every day and absorb it into your options trading system. I do.
When it comes to trading there is no one strategy or style that will work for everyone. In fact when we look at some of the most famous traders we can see their exact approach and what they chose to trade varied greatly. That said there are certain practices that all traders can benefit from. Here I have compiled the top 8 tips that any trader can implement and improve their performance.
One of the best ways for beginners to get started is to make trades only on paper. This is where you trade exactly as you would if you were using real money but no actual financial transaction takes place. Many online brokerages have the facility to paper trade without you having to put up any money. When paper trading it is essential that you keep accurate records. It is tempting to remove bad trades because you "didn't really mean it" but understanding how you lost money is just as important as working out how you make it. One word of warning - do not paper trade for too long. While paper trading is a great place to start its no substitute for real trading.
When it comes to trading there is no shortage of information available on the Internet. Don't neglect your local bookshop or library however. A good place to start is "Market Wizards" by Jack D Schwager which interviews a wide range of the top traders of all time. You should also read books about traders such as George Soros, Jesse Livermore and Paul Tudor Jones. While the exact strategies that they used may not apply, what you can learn about the mindset of a master trader is invaluable.