How to Pick Options to Trade

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How to Pick Options to Trade

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www.TraderNewsAndReviews.com

Options trading success starts with picking the right options to trade.



Do you trade stock options or options on commodity futures?



Where is the volatility that leads to profits?



Where is the market inefficiency that you can take advantage of?



Even the most sophisticated options strategies require that you have a clear idea of what a stock will or will not do in the coming weeks or months.



If you use a stock picker that helps you identify stocks that will soon go up in price you can ignore put options and consider only calls.



Likewise you can look at puts on stocks that are ready to go down in price.



In the end how to pick options to trade boils down to doing the work yourself or relying on a professional service like Pivotal Cash Bonanza.



Using a Professional Service



When you use a professional service to pick options there are two approaches.



One is that you are passive, receive trade recommendations and execute them.



The other is that they teach you how to pick options to trade.



This approach requires that you learn how to use their software which is loaded on your computer.



The value of a service like Pivotal Cash Bonanza is twofold.



They will send you trade recommendations with step by step instructions for execution which they suggest that you read word for word to your broker.



Or they will teach you how to use their software on your computer and pick your own options to trade.



When picking a professional service make sure that their picks work out before ramping up the amount of capital that you commit to their suggested trades.



Singles or Homeruns



How much time do you want to spend trading options?



How much of a profit will make your efforts worthwhile.



Do you have the time to trade lots and lots of options in search of moderate profits on many trades?



Are you willing to trade only a few options in search of big profits?



How to pick options to trade depends on which path you want to take.



If you are looking to make a huge profit in trading options you need to do lots of homework and be patient.



Steps to Picking Options to Trade



If you are doing the work yourself here is how to proceed.



Decide what your goal is. Is it to hedge risk or earn income?



Know what your risk tolerance is compared to the reward that you want from options trading.



Learn how to pick options trades with high volatility.



Pay attention to the market and to the stocks underlying your options trades.



Specific market events will drive prices and those who pay attention are the ones who profit.



Develop and continually upgrade your trading strategy.



If you lose on a trade you will obviously want to change your approach but the same applies to winning trades because in the end you want to sell near the highest high and buy near the lowest low on every trade.


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How to Pick Options to Trade