Posts

Showing posts from October, 2020

GUIDE TO TRADING USING TREND LINE WITH SUPPORT/RESISTANCE ON IQ OPTION

  Trade with the trend – that’s an age old mantra that professional traders live by. If you trade with the trend, you’re increasing the odds that your trades will be profitable. But this is easier said than done. First, you’ll need to identify the trend. Then, you’ll need to identify the best trade entry points. Pro traders can easily do this without need for indicators or other special tools. However, for beginner traders, it can be challenging.   That’s why I’ve created this short guide. In it, you’ll learn how to draw a trend line, support and resistance, and how to use them to trade on the IQ Option platform. Let’s get started.   Setting up a trend line Trend lines are used to chart the direction of a trend. The steepness of the trend line can help you have an idea about the trend’s momentum. Steeper trend lines indicate that the price is moving fast in a certain direction.   To set up this indicator, start by clicking on the graphical tools feature on your ...

The Different Types of Options on the IQ option platform

Image
 What are options? An option is a contract that gives you the right to buy or sell an asset at a preset price at a specified moment of time in the future. Example of an option Let’s take an example. Company A sells petrol. The cost price of petrol includes among other things the cost of raw material. In our case it’s oil. Oil prices are changing constantly. So the company decides to use an oil options contract in order to mitigate the risk of oil price increase. So how does the option contract work? For example, oil now costs 100 dollars per barrel. Company A goes to an exchange and concludes an options contract with a broker for purchasing oil at 100 dollars next month. The company has to pay the cost of the option contract also called the option premium to the broker. For the sake of the example let’s say the option premium is 10 dollars. Now let’s study two scenarios. One month later the price of oil rises to 200 dollars per barrel as Company A has the option contract for purcha...

Do You Want To Know If Martingale Strategy Suitable for Money Management in Options Trading?

Image
  In general, you have to manage your money to attain the profit. But as like in every business in trading also there is a chance of facing the loss. Hence, at that time also you have to play with the mind and eventually try to increase the profit and decrease the loss.   For the same reason, a martingale strategy in IQ option is very commonly approached father traders to incur their losses. We will discuss anent a lower-risk martingale strategy in detail further.   What exactly the strategy is all about? Under this strategy, it states that you have to increase your investment to incur your loss. One needs to invest in the trades in the multiple of the previous loss so that if the profit comes up with this investment will be double and will stabilize the losses of the last sale also.   But this strategy is based on risk as you never know that in the next step you are going to get the profit or the lost again.   But the strategy says that even if you face lost ag...