Option Swing Trading – A Safe and Highly Profitable Trading Strategy
Option Swing Trading focuses on using one of the oldest and most popular trading methods for trading the markets.
BENEFITS OF OPTION SWING TRADING:
Option Swing Trading takes advantage of short term moves in share prices and uses the leverage available in options to create an income stream with much less capital than would be needed if you were trading the shares themselves.
Options also give you the ability to make money whether the move is upwards or downwards.
You simply use call options for an upward swing and put options for a downward swing.
If you were trading stocks you would have to short sell the stock for a down swing and take on margin risk.
OPTION SWING TRADING CAN BE APPLIED IN TWO WAYS :
The first way is identify chart patterns and wait for a price move in either direction, compare it to the size of recent historical moves and then anticipate a short term retracement.
The stock does not need to be trending up or down for this strategy – for example, it might be in a sideways channel or a broadening top or bottom.
You enter the trade at what you believe to be the extremity of the move, preferably after price action has been consolidating over at least 3 days and gives a reversal signal.
Once you enter the trade, the next challenge is to exit before the reversal blows itself out. You can often clean up with a tidy profit of greater than 50 percent on your risked capital.
Advantage can be obtained from using Vertical Debit Spreads in combination with this method, you can make excellent consistent profits with minimal risk.
SECONDTIPCOMINGYOUR WAY SOON . . FINGERS CROSSED