What is a good strategy for trading Currency Options?

Question

What is a good strategy for trading Currency Options?

Answer 1

Pay attention to financial markets constantly.

Practice predicting trends.

Keep a log of your trend predictions.

When you're consistently correct more than 60% of the time, figure out how to actually mechanically do the trade, and start doing it. Not before.

There are some people who make good money doing this, but there are more people who dabble in it and lose their money.

It's very tricky business, and the margins aren't good. (currencies don't fluctuate my more than a couple of percent at a time.) You'd be much better off investing in stocks or mutual funds. It's easier to learn, and you're betting WITH the companies who's stock you're buying instead of against them.

Answer 2

It really depends, if you place your order by phone you will get a lot of tips from floor trader - they charge you extra compare to you using DMS to place the order yourself, therefore, you should ask him for any market tips. Floor traders are pretty busy but they don't mind spending a minute or two on the phone to tell you whats hot.

My personal experience has taught me to avoid at-the-money option contracts that are soon expiring, they usually turn into out-of-the-money and expire worthless.

Answer 3

talk to other expert forex dealers and get their opinions on their trading techniques. refer to this site. for a minimum deposit of $100 which you can also use to trade later, they will provide an Account Service manager to be your personal consultant who will serve as your mentor and trading partner, will answer all your technical questions and with whom you can talk live over the phone, email, chat or any form of communication available and will guide you how to use your own technical & fundamental analysis needed for a successful forex trading.

Answer 4

Have lots of cash and don't be disappointed when it is gone.

Answer 5

I don't go with strategies anymore... I lost a lot of money trying it on my own (after years of learning). I just switched over to a trading system and now it takes care of my entire income.

If you're interested here are reviews of the top 3 Forex trading systems: http://forex-tracer.the-perfect-solution...

I also found this article: http://ezinearticles.com/?Forex-Tracer-R...

Answer 6

Not buying "software" to pick the trades.

Not using an "FX" alert service.

Best bet;

Take two years to learn this stuff. There is no "easy way out".