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EUR/USD Daily Outlook
Trading Idea
Dec 11
This week we have seen a major bearish break of daily support, a quick drop and currently the pair is consolidating in a triangular wedge patter. In general this type of pattern is a consolidation pattern – meaning it is a bearish signal because the preceding flag is bearish. As such I am biased toward the downside. It is the end of the week and we do have some news tomorrow (EUR Trichet speaks at 12:15, USD retail data at 13:30) – all of which can increase volatility. I expect one of the news events to push us out of this wedge pattern.
Trading Idea
1.4775 is the key bearish resistance level – as long as this holds I will remain bearish on the pair. If the wedge is broken to the upside I will look for signals to sell below this level. If the bottom of the wedge is broken (currently around 1.4700) that opens a challenge of 1.4665, 1.4635 and 1.4600. Short targets from 1.4775 are 1.4745, 1.4710 and 1.4670. If 1.4775 is broken to the upside it puts 1.4850 back into play as a long target.
Guide for options trading – Part 1
There are hundreds of free options trading information’s available in the website for example Investopedia, Nasdaq, Option Trading Council, CBOE etc to choose, but i choose Investopedia .com and OTC because they provide complete information’s ranging from Stock, Options, Mutual Funds, Forex, Bonds etc. articles to find. Now let focus where to find article about Options in Investopedia.com website and OTC.
When you visit Investopedia.com homepage, you will notice tutorial tab in the menu bar. In that tab, there are sub-menu and choose menu that suite for you. As this article probably suite for novice trader, click the beginner menu and it will direct you to the Basic Investing Tutorials. In this page, read the topic about Investing 101 and Stock Basics that related to Options trading.
When I was a novice trader a year ago, I feel charged with some kind of energy while reading the first paragraph of Investing101 and Stock Basics. The reason is, probably I could recover some percentages huge amount of money I have lost in other investment and the second objectives is to quit my job at the earliest opportunity. This is not an empty promises, so do yourself a lifelong favor and keep reading.
Stock Basics: Introduction
Options Trading.
Guide for options trading – Part 1
In this brief article, I would like to share with you how to diversify you income in options trading which is relatively low risk with high returns compared to forex trading. To start your objective, it is recommended you to read articles related to option trading which I will guide you where to find and subsequently register a demo account for practice prior live trading.
There are hundreds of free options trading information’s available in the website for example Investopedia, Nasdaq, Option Trading Council, CBOE etc to choose, but i choose Investopedia .com and OTC because they provide complete information’s ranging from Stock, Options, Mutual Funds, Forex, Bonds etc. articles to find. Now let focus where to find article about Options in Investopedia.com website and OTC.
When you visit Investopedia.com homepage, you will notice tutorial tab in the menu bar. In that tab, there are sub-menu and choose menu that suite for you. As this article probably suite for novice trader, click the beginner menu and it will direct you to the Basic Investing Tutorials. In this page, read the topic about Investing 101 and Stock Basics that related to Options trading.
When I was a novice trader a year ago, I feel charged with some kind of energy while reading the first paragraph of Investing101 and Stock Basics. The reason is, probably I could recover some percentages huge amount of money I have lost in other investment and the second objectives is to quit my job at the earliest opportunity. This is not an empty promises, so do yourself a lifelong favor and keep reading.
Stock Basics: Introduction
To summarize the content, in this section the author revealed that stock is the greatest tools ever invented for building wealth, number of the average person interest in the stock market has grown exponentially and probably you are the one among the hundreds and reason creation of the tutorial is for your benefits. You are advised to read the whole contents.
Options Trading.
After complete reading the above chapters, then the next step is to look at Options trading article, then go to the Options Industry Council homepage. These article is located at the right side menu bar. You will find details about, What is an options trading, Buying and selling, At a premium, Options value and Options price. Then at the bottom of this homepage you will find the articles you should read…This might be bored…reading…reading and reading. Remember without knowledge you will not achieve your goal.
The advantages of options trading? 1. Cost Efficiency – Less capital required compare to stock trading. 2. Less Risk - Depending on How You Applied The Trading Strategy. 3. Higher Potential Returns – During market uptrend or downtrend. 4. More Strategic Alternatives – Call during market uptrend and Put during downtrend. |
Now, let’s proceed to the next step to test your knowledge. In the Options Industry Council front page you will notice Try The Virtual Trading System. Click that icon and register a demo account. Feel free to explore or read the trading platform manual, watch the market movement or what ever as you like.
Bookmark this blog as I will post more information’s about trading indicators, stock screener and guide to choose the suitable broker.
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