As hard as it is to believe, another year has come and gone.
But all this means is that you’ve now got a brand new year to make twice the money you made in 2016.
And these are the three trading tips to help you do it…
1. How do I choose which strategy to focus on over all the others?
There are a couple dozen different option strategies. So the first thing you need to ask yourself is if you’re a “directional trader” or a “non-directional trader.” Directional traders focus on price and time, so you’re going to be looking at trading strategies like calls, puts, call spreads, put spreads, in-the-money butterfly spreads, and many other price and time strategies. If you’re a non-directional trader, you’re going to be looking at volatility first. That means you’re going to be looking at trading strategies like straddles, strangles, iron condors, or butterfly spreads, and other volatility strategies.
Ultimately, knowing which type of trader you are (directional or non-directional) will be the key to whittling down the strategies you should focus on for profits.
2. How many strategies is too many to work on at one time?
The answer to this is similar to the question above… You don’t want to use more trading strategies than you can actually understand – and remember.
Also, when it comes to learning and practicing strategies, it’s great to be a “Jack of All Strategies.” However, you want to become a master of two or three strategies that work in upside (bullish), downside (bearish), and sideways (neutral) situations. That way, you can set trades to capture profits no matter which way the markets turn.
3. I read your article about not buying gold until after Christmas. Now that Christmas has passed, what’s your outlook on gold, and how would you trade it?
Gold is a long-term outlook, and I see January as being one of these bottoming transitions for gold. I also see gold reaching a price range of $120 to $130 by the end of 2017. For that reason, you could consider calls, spreads, and butterfly strategies for capturing profits. But we’ll explore these options in greater detail next year.
These were excellent questions, as always! So keep them coming in the Comments section at powerprofittrades.com, or via Facebook and Twitter.
Happy New Year to you and your family!
And stay safe…
Tom Gentile
America’s #1 Trader
