One of the best advantages about the options industry would be the simplicity of trading platforms which allows newbie day-traders the ability to catch on rather quickly with the style of options investing.
However, as many of you may have found out already or will find out, being able to effectively and profitably supplement your income online through option trading is not as simple nor as easy as it appears.
Now there are a number of ways that newbie and veteran online traders approach this problem such as relentlessly searching for reliable trading strategies to learn and implement or joining a signal service that oftentimes generate mix results and only operate during specific hours of the day.
However, the most commonly pursued avenue would be joining with a option based trading software.
Why Most Traders Choose A Software
Now why would be getting started with an online trading software be the most commonly pursued avenue for professional day traders? Well that can be contributed to a number of cognitive factors such as simplicity, availability along with minimum cost requirements.
You see, most people prefer to take an easier route when it comes to completing tasks in life and when it comes to investing this truth is just as evident. Compared to most signal services that only operate during specific hours trading systems can be used just about anytime an investor wants to trade, except during the weekends of course.
Then of course we have the difference in price factors, since most technical based softwares require you to sign up and deposit with an options broker those funds still remain yours so you ultimately save money in the long run.
Best Automated Software Pointers
For those of you who have read the previous article OptionRobot Tips and Strategy for Success some of these tips may look familiar but there are a couple of new tips included that should be implemented while getting started with any online based trading software.
Now we know that some of you may be wondering why would we need to apply tips while using a cryptocurrency, option, forex or CFD designed trading software, isn’t the software supposed to be doing all the work for me?
Well yes it is but one thing we have learned throughout our time day trading the financial markets would be that softwares cannot take into consideration fundamental analysis factors.
So although you may have the best performing software its accuracy can become severely hindered due to minor fundamental factors that cannot be taken into consideration.
Make sure to solely invest like assets with correlating market hours. What this means would be that if you invest during the New York Stock Exchange (NYSE) that you should only consider investing with assets that are highly engaged during this session such as: Eur/Usd, Usd/Cad, Usd/Chf, Aud/Usd, Apple, Facebook, Microsoft and Google.
Making sure to invest like assets with correlating market hours is the best way to ensure that you are investing proper currency pairs during these market hours.
Now this doesn’t mean you can’t invest with commodities or indices but when it comes to online trading these are among some the most commonly traded assets which is why we encourage you to apply this tip while using any trading software.
Another tip that we can provide you which ideally should be recommended by every online trading software, signal service or system would be to practice good money management habits.
We believe by now you have become well-exposed and reminded quite frequently about the importance of good money management habits for those of you who have been following our blog for sometime now but for those of you who are not we’ll briefly discuss two of the most commonly used techniques for good money management.
The first technique requires investors to only invest an amount of 5% of your account balance per trade with a limit of 3 trades at any one time. Whereas the other technique, mostly incorporated by experienced traders, require an amount of 10% of your account balance per trade with a limit of 3 ongoing investments.
Static Management = 5% Account Balance/Trade
Ex 1) $500 Account Balance, 5% = $25/Trade
Aggressive Management = 10% Account Balance/Trade
Ex 2) $500 Account Balance, 10% = $50/Trade
Due to the amount of positive feedback that we have received from our subscribers about applying technical analysis strategies to serve as confirmations we thought it would be most appropriate to include it as one of the more overlooked software tips.
The incorporation of these strategies works great to filter out signals that may prove less accurate than signals generated solely by a software. Some of the strategies that you could consider applying while using a reliable and profitable trading software are provided to you below:
- Price Action Trading Strategy
- Basic Software Strategy Confirmation (Exempt Rule#1)
- Intermediate Software Strategy Confirmation (Exempt Rule#1)
Applying any of the three technical analysis based trading strategies above while using a reliable trading software can increase your success rate anywhere between an average percentage of 2 to 9%.
Being able to filter out less probable signals is a great advantage for investors but in order to apply this pointer to make sure that your software can invest on a manual or semi-automated investment mode. One of the best performing manual and fully-automated trading softwares would be the proven Maximus CryptoBot for cryptocurrency enthusiasts, or those looking to diversify their investment portfolio.
Perhaps the most effective tip that we can provide traders that doesn’t require the implementation of a strategy would be to gain access to an economic calendar and avoid medium to high predicted levels of volatility for your selected assets. This can easily be done by taking advantage of the free economic calendar that we have on our website.
What you will need to make sure to do if you apply this tip would be to avoid investing for 15 minutes before and 15 minutes after a market report has been released that concerns your targeted asset or security. Apply this tip and your probability of success has increased significantly when investing online with trading solutions whether it be with a strategy, service or software!
One of the most simplistic tips that you can apply while using a trading software would be to log into your assigned broker account and check out the current market sentiment present for your signaled asset.
If the majority of the traders on your platform believe that the price of an asset is likely to head in the same direction signaled by your software then you can go ahead and execute your investment.
If the investment signal generated by your software does not agree with the current market sentiment of a particular asset then you should consider voiding the investment.
Don’t worry either, being logged into your broker account while using the trading software wonder hinder or cause any delays either if you get a confirmation and execute any investments.
Best Software Tips Review
Although the incorporation of any or all 5 of these software tips don’t have to be applied while using a reliable and profitable trading software the utilization of these tips have proven to increase success rates while providing investors with more experience than just using a software in general.
Not only will applying all of these investment tips help increase your success rate by a few precious percentage points but it will also increase your understanding of both technical and fundamental analysis which are key factors when investing with day trading.
The knowledge you will gain is invaluable and your profits will increase as well which is all any one trader could ask for.
Now for those of you who have been searching tirelessly for a proven and reliable trading software we encourage you to check out the Maximus CryptoBot!
As many of our subscribers know we are a pretty active community here so if you have any questions, comments or feedback to share please feel free to leave them in a comment below and we’ll do our best to get back to you within a 24 hour period!
We hoped you enjoyed our informative online trading software points and if you want to learn more about online day-trading and to stay current with all online investing news make sure to subscribe to our options portal!