Good Day rookie Bloggers! We are back with our weekly dose of trading knowledge and discussion. Last week we took another simple trade and broke it down into usable parts so that we can plan our trades effectively and be ready to manoeuver around the market movement without putting ourselves in jeopardy. We went through the credit spread trade and we talked about all the different types of credit spreads the basic things we need to know to put the trade on. That is only the beginning of our work as we then determined the when, the what, and the why of any adjustments we might need to make. We also took it a little deeper and went into a few indicators to see if we couldn’t get a clearer picture of what we expected the trade to do before entry. This process of gathering information must become like second nature if you are to be successful in the game of trading long term.
This week I want to get back to one of the most simple trades we do but the one that carries a large amount of risk and needs as much clarity as any other trade even though it may be the simplest to get into. Last week I went into some extra research before entering the trade and this can be helpful for some traders but it is not vital that you do this especially if it hampers your ability to pull the trigger on the trade. This week we are going to go through a long call trade and delve into the trigger setup which is paramount to success and we are also going to talk about possible hedging strategies just in case after all our research things still dont go our way.
So take a look at this weeks video and see if this is a process that you currently go through or whether there may be some things you can add to your process to make better trades.