Perfect steps to create a 15-minute options trading strategy

Options trading is very similar to currency trading. You need to predict the price movement of the financial instrument and then you will be able to make a serious profit. Being an options trader, you have to be careful about timing issues as your profit greatly depends on it. You might think options trading is relatively easy, but it’s tougher than it seems, as you need to time the trade properly.

Today, we will learn some amazing steps you can use to create an options trading strategy in less than a week. For this system, we will be using the 15-minute chart.

Why we will trade a 15-minute chart?

The smart options traders in the United Kingdom love to ask themselves why they are trading in a certain time frame. The reason why you will be creating the trading method in the 15-minute chart is for the accuracy. Most of the time, traders lose money because they don’t have the skills to analyze the market dynamics in the lower time frame. In a higher time frame it becomes hard for a trader to focus on the trend. To find the perfect balance, we will stick to the 15-minute chart so that we can make a serious profit without having any issues.

Drawing the support and resistance level

Support is a perfect place to take the call option. On the other hand, resistance is a place where we go for the put option. The elite traders prefer options trading with Saxo because it helps them to find the potential trading zone. Things might seem easy but if you learn to use the horizontal support and resistance level, you will be able to identify the valid support and resistance. Though it is a tough task for rookies, once you focus on the core dynamics, it won’t take much time to blow up your account.

The payout from the trades

Before you take any trade, you need to analyze the payout. If the payout is less than 75%, don’t take the trade. Trading with a high payout is more like taking trades with a high risk to reward ratio. So, develop the strategy in such a way so as you can trade during the active hours. In general, a high level of volatility allows you to trade with a high payout option. So, choosing the overlapping session for your trading method is the perfect way to fine-tune your trading method.

Revise your risk exposure

You might be thinking that risking 2% of your account balance is fair enough to make money from options trading. But if you dig deep, you will learn the pro options traders are trading with variable risk. They never trade with aggressive methods because they know it can increase the associated risk and make their life miserable. If you want to change your life, make sure you learn to deal with the market dynamics and risk factors properly. Stop following the standard 2% rule and try to diversify the risk exposure so that you can earn more money.

Trading the real market

Once you have the strategy in place, you need to trade in the demo account. The demo account can help you to find the faults in the system. Since you will be taking trades in the 15-minute chart, you don’t need to trade for months. After executing 30 trades, you will know the faults in the trading method. Fix the faults so that you can make a consistent profit without having any trouble. Take your time and focus on the long term market dynamics.

Never get irritated by losing trades. Switch back to the demo when you lose too much in the real market. At times, take some breaks when you get bored of taking trades in the real market. Keep yourself relaxed so that you can enjoy the profession.

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