Option Trading With Candlestick Signals

Option Trading With Candlestick Signals

“Good judgment comes from experience, experience comes from bad judg­ment.”

Huge profits can be made trading options. It is easy to do. At least that is what a multitude of option trading services preach. “Use our program and watch your profits soar,” is promoted on option trading web sites over and over. Un­fortunately reality finds that there are a few investors that have been made wealthy from these sites.

Why shouldn’t it be easy to make big profits with options? All you have to do is find stocks that are going up and buy the calls. Find stocks that are going down and buy the puts. The sites or programs that are doing well for demon­strating how to use options successfully stand out like sore thumbs. Everybody knows about them. When something is working well in investing, everybody becomes instantly aware. Oops, you don’t know about these easy-to-leam pro­grams for successful option trading? If they were out there, you would know about it! Everybody would know about it. Option trading is like any other investment program. If an investor wants to be successful at trading options, they need to learn their own program.

Candlestick analysis becomes an integral part of formulating a successful option trading program. Options strategies, just like any other investment strat­egies, require proper application of correct strategies in different market condi­tions. One trading program that may work successfully in today’s markets may not work in the trading atmosphere 90 days from now.

Understanding the different elements of successful option trades is the first step. Options have many parameters involved in their successful applica­tions. Unlike most investments, where direction is the main criteria, options require the analysis of a number of criteria.

What make options attractive to investors? Leverage!!! The following ex­planations may appear to be relatively elementary. However, most investors approach trading options without realizing all the criteria that need to be ful­filled to make a successful option trade. Having a full understanding of what makes for a successful option trade will make the utilization of candlestick analysis, for option trading, much more clear.

What is the intriguing element of trading options? A small amount of investment funds in control of a large amount of assets. Essentially a small amount of money controlling a larger asset base, timed properly, can produce huge profits. The dream of every investor!