I had right now a fellow trader asking me about which centerlines could be met, if I have two forks on the chart. The answer is: either of both can be met, even if the other one is a very big one like the one in the current Gold chart: https://www.tradingview.com/chart/GC1!/Wp78HEtp-GC-Gold-do-it-again/
Why is this possible?
It is a question of the perspective, the context:
If you look for "quickies", then you probably prefer to trade the smaller ones, because the TIME it takes to reach the centerline of the smaller fork is shorter, even if both have the 80% chance to be hit.
So, think first what you can stand, what your style of trading really is and with what product you trade it. And by "product" I mean the underlying or options or futures etc.
I like to trade options very much.
But I seldom only buy options, I look for theta - time decay and collect premium.
If my assumption of a market is heavily directional, then I use options too, playing my chances with a RiskReversal (Selling options for a premium which finances me the bought options, that are usually two or more times the bought ones.)
Go slow, learn (by asking like this trader) and then you will earn...it's a process and it takes time.
P!
Why is this possible?
It is a question of the perspective, the context:
If you look for "quickies", then you probably prefer to trade the smaller ones, because the TIME it takes to reach the centerline of the smaller fork is shorter, even if both have the 80% chance to be hit.
So, think first what you can stand, what your style of trading really is and with what product you trade it. And by "product" I mean the underlying or options or futures etc.
I like to trade options very much.
But I seldom only buy options, I look for theta - time decay and collect premium.
If my assumption of a market is heavily directional, then I use options too, playing my chances with a RiskReversal (Selling options for a premium which finances me the bought options, that are usually two or more times the bought ones.)
Go slow, learn (by asking like this trader) and then you will earn...it's a process and it takes time.
P!
