Here are a few trading signals you might not have thought about before now.
1. Be aware that the market is always open – except when it isn’t. So you can trade after hours, or can you? Now I’m confused.
2. Directional trades are most popular, but some traders are unclear about the direction itself. Use this
signal to clarify which way you want to go.
3. Watch out for impossible situations. You may want to stop, proceed, go back, turn left, or turn right once in a trade (long, short, call, put, combination?). But sometimes nothing works.
4. Watch out for bargains. Sometimes they might not be as good a deal as it sounds at first.
5. You might think you’re in a bull market, but the bears might drop in on you at any time. Always look up to make sure you’re not about to be bear invaded.
6. Some signals are confusing or even contradictory. So be sure you know the ramification of what the
signs tell you before acting.
7. Signals have to be confirmed. But remember more than anything else, some signals just don’t tell you anything you don’t already know. Make sure the signs are helpful.
8. Confirmation is not always a matter of agreement. Decide what, if anything, you want when the
signals tell you opposites instead of confirming each other.
I hope these 8 gems of wisdom have been helpful to you, and will improve your experience in trading options.