MOST PROFITABLE STRATEGY : OPTION TRADING
Market is euphoric up one day when all investing community gave targets like 8000,8200 and panic down the next day, again the same people gave target like 7500, 7200 and so on.
In SUCH unpredictable volatile times OPTION TRADING (LIMITED RISK UNLIMITED PROFIT) is the best for all Investors.
Golden rules of option trading :
1. Generally a small investor buys a option suppose at 5 ,when it becomes 6 or 7 he immediately sells it, but never sells when it becomes 3, even wait for last minutes on the expiry day hoping some miracle to happen, thereby losing his entire investment.
2. Normal stop-loss theory will not work in case of option. It depends on the value of underlying,positions of big players and the days left in expiry.
3• Buying and selling options at right price is very important as there is no much liquidity in most of time, so premiums are arbitrary, generally fixed to take small investors for a ride.
4• Never buy options when News broke by so called BREAKING NEWS on television, as premiums are jacked up much before releasing the news.
5• Never invest your whole fund in one option call hoping to multiply your capital overnight, as risk is equally high.
6• Make disciplined investment in options at regular intervals with a little diversification.
Moral of the story: big money can be made with small capital in safest way of option trading.
TO GET MOST PROFITABLE OPTION CALLS
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