Options trading might seem difficult to many rookie traders, because the expiry period of the traders greatly affects the trading results. To become successful in the options trading business, you need to know how the timing of the trades affects the market. If you are good at analyzing the market dynamics, you will be able to find the direction of the trade. But failing to close the trade at the right time will result in loss. Option traders have to deal with the expiry period of the trades. If you want to survive in trading, you must be careful about the trade execution model.
Considering the concepts of rookie traders, we are going to highlight the perfect way to create a 15-minute options trading strategy. Though it will be tough for many new traders, you can learn it by following the steps of this article.
Analyze the 1-hour chart
You need to analyze the 1-hour chart to find the pivot levels. Without using the pivot level, it is impossible to take trades in the Forex market. Though you will be executing trades in the 15-minute chart, you must focus on the higher time frame pivot level. The reason for using the higher time frame pivot level lies in its reliability. Lower time frame support and resistance level create massive confusion into the mind of the traders. If you look at the professional traders, you will understand that they focus on the higher period data but execute trades in the lower time frame.
Switching to the 15-minute chart
This is the most critical part for new traders in the options trading industry. After drawing the pivot levels, you need to make the switch. After switching to the 15-minute chart, you will notice that the support and resistance levels are still prominent in the 15-minute chart. You have to wait for the price action confirmation signal to trade that level. Since the trade execution will be done in the 15-minute chart, the expiry for each trade should not exceed 15 minutes. Instead of taking trades against the major trend, you should try to focus on the trend trading method. By sticking to the key trend, you will be able to earn more money without having any stress.
Analyzing the trend
Some of you might have a clear idea of how to find the trend. Well, it is very easy and you can do so in the daily chart. By analyzing the daily chart, you can find the support and resistance level with a high level of accuracy. Things might be tough at the initial stage but once you learn to take the trades with discipline, you will be able to make money. Use the simple trend line tool to draw the trend line. Remember the trend line tool can also provide a critical trading zone for the traders. But you can’t take the trades based on the daily chart. You must make a switch to the 15-minute chart while taking the trades.
Analyzing the payout for the trades
The professional options traders always analyze the payout for the trades. If the payout is less than 75% they never take the trade. It’s more like managing the risk to reward ratio in the trades. You need to focus on the bigger wins to make money at trading. You can ensure a high payout by choosing a good broker like Saxo. They always provide professional trade execution for retail traders. Unless you take the trades with discipline, it will be tough to make money at trading. You have to be very careful about the payout options and only then will you be able to execute quality trades without having any issues.