There are plenty of examples of brilliant traders using a choice strategy to earn money year after year and then all of a sudden as the market trend changes, they're going broke. Regularly they suddenly thought they understood the markets and tried to trade options thinking that the market trend would move with the logic they'd learned. It is change that has become their executioner! If this happens so regularly with trading options on a once per month basis, how much more would it occur if you're trading weekly options where change is so much for unavoidable?
When you are trading weekly options, change in market trend must be worked out into your action plan. For the last 250+ years the markets have always changed and that's what makes them the same. Accepting this 'change ' philosophy in your plan of action is the 1st step to understanding that markets don't stay the same and market trend will have a massive influence on your success if your option trading system is intended to adjust to this change.
When a trying period develops in the markets, many investors and traders think there is a problem and something must be done to correct it. A successful and seasoned trader knows how to conform with a carefully designed Option Trading system. If you were trading (especially weekly options) and your system isn't working for you anymore, you might be crying out the market trend modified and my method isn't working anymore. Well, yes the markets have changed. Not only did the market trend change, but it may continue to change. That's what the markets do"they change. And a good successful trader will presuppose change and base his/her strategy upon it.
Your weekly option trading plan should be well defined; easy to evaluate; and your numbers can be measured. If you've got this in effect the fact that stuff is changing on you will turn out to be an advantage for you! Without this in place , change will lead on to your monetary death. As a trader, you can't forecast anything. If a system was developed that one could envision the markets, this would be a trading craze that every trader would jump on! But you can't. Just have a plan that also adjusts to the market trend changes, and it is irrelevant how frequently the changes take place, you'll be successful.
Adapt to change in the markets. As market trends change, they become bullish, bearish, or sideways. Your options trading strategy should be designed to change with the market trend and you should be capable of making money continually. If you don't have this prepared you are robbing yourself of potential profits that repeatedly present themselves to you. If you are here to earn money, then use each change that comes your way.
When you are trading weekly options, change in market trend must be worked out into your action plan. For the last 250+ years the markets have always changed and that's what makes them the same. Accepting this 'change ' philosophy in your plan of action is the 1st step to understanding that markets don't stay the same and market trend will have a massive influence on your success if your option trading system is intended to adjust to this change.
When a trying period develops in the markets, many investors and traders think there is a problem and something must be done to correct it. A successful and seasoned trader knows how to conform with a carefully designed Option Trading system. If you were trading (especially weekly options) and your system isn't working for you anymore, you might be crying out the market trend modified and my method isn't working anymore. Well, yes the markets have changed. Not only did the market trend change, but it may continue to change. That's what the markets do"they change. And a good successful trader will presuppose change and base his/her strategy upon it.
Your weekly option trading plan should be well defined; easy to evaluate; and your numbers can be measured. If you've got this in effect the fact that stuff is changing on you will turn out to be an advantage for you! Without this in place , change will lead on to your monetary death. As a trader, you can't forecast anything. If a system was developed that one could envision the markets, this would be a trading craze that every trader would jump on! But you can't. Just have a plan that also adjusts to the market trend changes, and it is irrelevant how frequently the changes take place, you'll be successful.
Adapt to change in the markets. As market trends change, they become bullish, bearish, or sideways. Your options trading strategy should be designed to change with the market trend and you should be capable of making money continually. If you don't have this prepared you are robbing yourself of potential profits that repeatedly present themselves to you. If you are here to earn money, then use each change that comes your way.
About the Author:
John Mylant is the Director of Trade Weekly Options. 1 in significant demand as an investment coach. Coaching traders all around the world teaching them, the most effective way to grow their portfolio, John uses options trading strategies that are safe, conservative, and allows for fast steady expansion with small culpability.
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