Tuesday, July 17, 2018

2 Unique Strategies designed to win!

I don't know about you, but I'm sick of trading "gurus" acting like trading is really easy. It’s not!
And it's an insult to struggling traders who are smart and work hard but haven't found success yet (especially since the guru saying his method is easy probably isn't even a real trader).
The reality is that thoughtful, hard-working retail traders are struggling because trading is hard.
You know that- no matter how much slick marketing they throw at you.
And the reason it's hard?
It's complex.
How many times have you got the direction of the market completely right and still lost money? How often have you learned a technique that works for a bit and then starts losing you money when the market changes?
But one professional day trader has studied this market complexity for years and ingeniously narrowed things down to the 2 unique day trading techniques that work in every possible market condition.
The techniques are not complex in themselves, but they're not overly simplistic either. You need to study and practice them to use them right, but once you do your trading can take off beyond your wildest dreams. Want to know what those two unique strategies are?
Long/Bull Call Spread
A long/Bull call spread gives you the right to buy stock at strike price A and obligates you to sell the stock at strike price B if assigned.
This strategy is an alternative to buying a long call Selling a cheaper call with higher-strike B helps to offset the cost of the call you buy at strike A. That ultimately limits your risk. The bad news is, to get the reduction in risk, you’re going to have to sacrifice some potential profit.
Because you’re both buying and selling a call, the potential effect of a decrease in implied volatility will be somewhat neutralized.
The maximum value of a long call spread is usually achieved when it’s close to expiration. If you choose close your position prior to expiration, you’ll want as little time value as possible remaining on the call you sold. You may wish to consider buying a shorter-term long call spread, e.g. 30-45 days from expiration.
Long Put Spread
A long put spread gives you the right to sell stock at strike price B and obligates you to buy stock at strike price A if assigned.
This strategy is an alternative to buying a long put Selling a cheaper put with strike A helps to offset the cost of the put you buy with strike B. That ultimately limits your risk. The bad news is, to get the reduction in risk, you’re going to have to sacrifice some potential profit.
When implied volatility  is unusually high (e.g., around earnings) consider a long put spread as an alternative to merely buying a put alone. Because you’re both buying and selling a put, the potential effect of a decrease in implied volatility will be somewhat neutralized.
The maximum value of a long put spread is usually achieved when it’s close to expiration. If you choose to close your position prior to expiration. You’ll want as little time value as possible remaining on the put you sold. You may wish to consider buying a shorter-term long put spread, e.g., 30-45 days from expiration.

Call Now to learn how to execute these strategies and many more!
Universal Investment Strategies

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