Profitable Option Trade

Profitable Option Trade

Bywww.Options-Trading-Education.com

http://www.options-trading-education.com/

In this article we would like to consider the profitable

option trade.

http://www.options-trading-education.com/6587/profitable-option-trade

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http://www.options-trading-education.com/6587/profitable-option-trade/



The broad view of options trading has to do with

strategy.


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For example, traders may buy options to hedge risk.


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http://www.options-trading-education.com/6531/buy-options-to-hedge-risk/




This is common for companies that do business across national borders and must exchange currencies.


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It is also common for producers of gold,

agricultural products, and other commodities as well

as buyers.


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Speculators simply look for market opportunity and

trade any equity that shows promise.


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In each case the work boils down to a single trade, one

after anotherhttp://www.options-trading-education.com/6587/profitable-option-trade

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Knowing how to execute a profitable options trade is

essential to making a profit in options trading.


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Profitable options strategies are only as successful as

the single profitable options trade.


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http://www.options-trading-education.com/6555/profitable-options-strategies/




Making More Money Than You Lose


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Whether the options trader leans more heavily on

analysis of fundamentals or strictly technical analysis of

the market, he will always win some and lose some.


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The point of making a successful business out of trading options is that the

bottom line should be written in black ink and not

red.


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This includes costs of trading


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New traders may be ecstatic when they make a few dollars

in a trading day but less happy when they see that most of their potential profits were

eaten up by fees and commissions.


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The smart trader expects to be paid for his time.


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He will consider what his profit is once he subtracts the

prorated costs of his trade station, software, internet

connection, the cost of his work space and his time.


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A profitable option trade must be sufficiently

profitable that the trader makes money when he

takes all costs and time into consideration.


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Avoiding Greed and Panic


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When an options trader considers the fact that he is running a business and that

losing trades come out of his pocket he may occasionally

succumb to fear when a trade looks bad.


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Or he may get greedy when he thinks that he can make

just a bit more on the current trade.


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Traders set buy and sell trading stops for two

reasons.


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One is that the market can change in a hurry, wiping

out gains and creating losses where there once

was promise.


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Traders are wise to remember that a profitable

option trade is money in their pocket and that a small loss

is an acceptable price to pay for avoiding financial disaster.


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Trading Is Like Being on Stage


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Think of a profitable option trade as well delivered lines in a play or a clutch hit in a

baseball game.


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Day trading options can be like a performance art


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Traders need to learn the skill sets necessary to trade


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But to make profitable option trade after profitable

option trade takes dedication, skill, homework,


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and a cool head, especially when markets are most

volatile and a single profitable option trade can

earn you profits for the whole month.


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Buy calls to lock in opportunity

and use puts to preserve stock gains


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http://www.options-trading-education.com/6551/buy-calls-to-lock-in-opportunity/

http://www.options-trading-education.com/6551/buy-calls-to-lock-in-opportunity/

http://www.options-trading-education.com/6558/use-puts-to-preserve-stock-gains/

http://www.options-trading-education.com/6558/use-puts-to-preserve-stock-gains/




Each case can be a profitable option trade.


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Do your homework, stay cool, and trade to profits.


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For more insights and useful information about options

and options trading visit

www.Options-Trading-Education.com

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Profitable Option Trade

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