Category: Options Trading (Page 2 of 4)

The Complete Guide to Trading Platform Development 

Automated trading software development is the backbone of the digital economy. They are the engines that drive a trading session, and they also provide liquidity to market makers.

We need to understand how they work and what their role is in the market. In this section, we will discuss key concepts of trading platforms like open order book, buy sell market maker, disco and how these can be used as building blocks for creating trading platform applications. The trading platform is a digital marketplace where buyers and sellers can exchange goods and services. The platform’s functionality may include:

“I am a trader, I have to generate content on my trading platform. How do I do that? I have a lot of trading platforms to test and study. How do I choose one?”

The trading platform development is one of the most important parts of any trading platform. It consists of two main sections: While a trading platform can be developed from scratch, it is more convenient to use an existing platform. This section deals with the creation of new platforms using an existing one.

How to Choose the Best Trading Platform 

As a beginner, you will be able to choose from many different trading platforms. The platform that you choose should offer enough features and flexibility to allow you to trade on a daily basis without having too much technical knowledge. Also, it should be easy for you to use and understand.

One of the most important factors when choosing a trading platform is what type of currency pair do you want to trade with? The most popular ones are Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Ripple (XRP). You can also find other cryptocurrencies like Cardano or IOTA on these platforms.

We all know that there are many trading platforms available out there, but which one is the best? We will give you a list of the top five trading platforms.

In this section, we will be explaining the various trading platforms that are available in the market today.

Dominant Strategies of Top Experienced Trading Platform Executives

A trading platform is an online platform that allows its users to trade and manage their assets. The platforms are designed to be used by both beginners and experienced traders.

Trading platforms are a very complex system of data, algorithms, and software that needs a lot of expertise to work properly. This makes it difficult for new traders to understand everything they need to know about the trading market.

The most experienced traders know how each algorithm works, how the market behaves in certain situations, what the best prices are for different assets and other factors that affect the price of an asset in real time. They also know what strategies work best for them so they can make informed decisions every day based on their own experience of trading.

They also have a good understanding of how people use the platform because they often trade with other people on the platform as well as against them in order to make money from their trades. So these top professionals use this knowledge when developing strategies for themselves.

What are the Best Crypto Currency Brokers? 

Crypto currency brokers are the ones that allow you to buy and sell crypto currencies. They are also known as exchange platforms and they offer a wide range of services.

In the crypto world, there are a lot of brokers that offer their services to customers. Some of them are the best and most trusted brokers in the market.

We can find a list of these best crypto currency brokers in this article.

There are too many crypto currencies to list them all. The best brokers will be those that have the most functionality and can provide you with the best trading experience.


Retail Investors Have Big Opportunity in the Market Right Now

Stocks and Crypto to buy in a bear market.
Stocks and Crypto to Buy in a Bear Market | Opportunity in the market right now.

That’s right, even in today’s bear market, retail investors have big opportunity right now.

If you’re a new investor or entered the market during the bull run, chances are your portfolio is down significantly.

But don’t let your first bear market shake you off because there are numerous opportunities out there that have the potential to yield big returns.

If you’ve been reading my blog for a while now, you’ve more than likely capitalized on opportunities such as AMC, HYMC, Shiba Inu Coin, Terra Classic, and Bitcoin during properly and fortunately timed moments.

So, what’s new?

In this article, I’m going to go over the opportunities I see that lie ahead for retail investors.

None of the information on my blog is financial advice but rather speculative content based on current information and trends in the market.

And with that being said, let’s get started.

Not Invested in The Markets Yet?

If you or someone you know are not invested in the markets yet, the two articles below are going to walk you through, step-by-step on how to buy stocks for the very first time and how to buy cryptocurrency for the very first time, too.

Much information on how to invest in the markets is outdated so I wanted to create easy guides for beginners.

You can read them here to get started:

Remember, one of the greatest wealth you can share with someone else is that of knowledge.

Opportunities in the Stock Market Today

opportunities in the stock market today
Opportunities in the stock market today.

During a bear market share prices tend to tumble, hence why many long-term investor’s portfolios tend to lose value.

And although we can’t entirely time the bottom, we know that at some point the stock market is at a massive fire sale.

Value investors such as you and I can pick up shares from our favorite companies at these low prices before the market reverses trend.

Economists, analysts, and entrepreneurs alike predict there is still room for another 10%-15% drop in the markets.

But for the record, these are just predictions after all.

The point here is for value investors to capitalize on this falling trend by purchasing low and holding during the next bull market.

Whether you choose to capitalize on opportunities presented in a bull market or not will ultimately be up to you.

However, capitalizing during a bull market will require value investors to buy during a bear market, not during the bull market.

After being involved in the retail community for almost three years now, there are stocks and crypto that just stand out as having big potential during the next bull run and I’m going to discuss them below.

Stocks Worth Buying During a Bear Market

None of the information provided below is financial advice, but rather speculative in nature based on market trends and current information at the time of publication.

AMC Entertainment Stock (AMC)

You’ve probably heard all the ruckus on AMC and ‘meme stocks’.

It’s true, the stock jumped from $5 per share to an all-time high of $72 per share.

AMC Entertainment stock is currently trading below $6 again due to this bear market.

What makes this stock such an interesting value investment is that it has a huge community made up of millions of people who plan to take its current price up again.

Plus, the company has beat earnings every quarter since 2021.

Investing in the largest movie theater chain in the world could prove to pay out big during the next bull market.

SPY Stock (SPY)

I’ve talked about SPY stock numerous times on my blog.

It’s even made the list of best divided stocks to buy for passive income.

SPY is the S&P 500 index fund that tracks the top 500 performing companies in the U.S and has been a favorite amongst value investors for a long time.

Warren Buffett himself says he’s moving 90% of his wealth to this specific stock when he departs us.

Just this thought should speak for itself.

SPY has a great track record for its increased value over time.

Vanguard Real Estate REIT (VNQ)

I believe every value investor should have at least one great performing REIT, or Real Estate Investment Trust.

VNQ is Vanguard’s commercial real estate investment trust with a great track record since the recession of 2008.

The REIT is also on the list of the best dividend stocks to buy for passive income.

While the real estate market is set to retrace some of its gains, keeping an eye on this stock may provide retail investors with big opportunity during the next bull market.

GameStop Stock (GME)

What GameStop is doing with their NFT marketplace is genius and not a lot of people know about it.

Wonder why, *ahem, mainstream media*.

The video game company is making it available for people around the world to own actual digital items inside games through the use of blockchain technology.

The opportunity this technology will bring to entrepreneurs and flippers alike in the future is massive.

Investing in GameStop early on could have massive potential as our economy shifts towards the digital/metaverse economy.

Amazon Stock (AMZN)

Amazon is now affordable for just about any value investor to buy shares from.

The company stock traded above $3K per share before its 20-for-1 stock split made it available for everyone to purchase.

AMZN is currently trading below $100 per share and it’s a steal whether you’re anticipating another 10%-15% market drop or not.

Tesla Stock (TSLA)

Despite what you might think of eccentric billionaire Elon Musk, you cannot deny what the entrepreneur has created is fascinating in its own respect.

Tesla stock has shown outstanding growth in the past even after stock splits.

We’ve seen this company’s stock reach massive popularity during the previous bull market.

In fact, it was right under AMC Entertainment stock as the most searched for stock on Google in 2021.

Meta Platforms Stock (META)

Most boomer investors, like mainstream media, don’t truly understand the potential of Meta.

While Zucks might currently get made fun of by Wall Street ego, there’s a huge opportunity investing in early technology, especially a technology that one day may change the world as we know it.

Today’s innovators will carry the baton, whether old power likes it or not.

Crypto to Buy During a Bear Market

crypto to buy in a bear market.
Crypto to buy in a bear market.

Here’s a list of cryptocurrencies I’m keeping an eye on in today’s bear market.

Think a stock or cryptocurrency should be on this article?

Leave a comment down below!

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If you’ve made it this far, it means you’re taking the steps to simply try to figure things out for yourself financially.

Well done on your part for seeking the information on how to become a better investor than you were yesterday.

Share this article with someone you care about or publish it on social media for others to see!

You never know whose life you may change by simply sharing the knowledge you’re taking in.

With that being said, thank you for being here today.

Until the next one.

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What Are the Best Days to Trade Stocks?

Best days to trade stocks
FrankNez options trading: Best days to trade stocks.

If you’re a new day trader and are trying to figure out what are the best days to trade stocks, then I have good news for you.

I’ve been trading options for an entire year now and have figured out which days are the safest to trade, and which days are the absolute worst.

I’m also going to go over a risk management strategy that is going to allow you to have bigger wins, and significantly smaller losses.

If you’re new to the blog, make sure you join the newsletter for more content like this.

And with that being said, let’s get started!

Best Days to Trade Stocks

Monday-Wednesday

During my journey as an options trader, I’ve learned that stocks tend to be significantly less volatile on Monday, Tuesday, and Wednesday, making them the best days to trade stocks.

These are the days where you want to take more than one trade (should your edge present itself to you) with confidence.

Sizing down during these days isn’t necessary unless your risk management strategy demands it.

You never want to overtrade as a day trader, but you should know what days have less risk than others.

How about the other days?

Here’s my personal experience.

Thursdays

Thursdays tend to have moderate risk and stocks tend to gain some volatility here, but charts are typically still very much tradable.

While day trading itself presents the trader with risk in every trade, I’m merely going over which days tend to be riskier in terms of volatility in the market.

As traders, we want to trade big price action in one direction or another and refrain from getting stuck in the chop, or from getting stopped out only to see continuation in our favored direction once we exit our position.

These anomalies usually occur due to the volatility in the market.

So, how do we avoid them?

By patiently waiting for an A+ setup or not trading at all.

Remember, cash is also a position.

Friday

Fridays tend to be the most volatile trading days of the week and could even be destructive if not assessed properly.

Most novice traders end up giving all of their weekly gains back on Friday.

In my experience, traders should not trade on Fridays unless an A+ setup presents itself.

And even then, it would be wise to downsize on this particular day.

There are far more experienced traders than I who simply take Fridays off from trading and start again on Monday.

Learning how to manage your risk on these particular days is what’s going to allow you to be consistently profitable.

Below is a risk management strategy that can help you navigate the waters throughout the week.

Day Trading Risk Management Strategy

  1. Set a fixed number of contracts to trade per new trade for Monday-Wednesday, Thursday, and Friday based on your account size.
  2. Limit your number of trades for Monday-Wednesday, Thursday, and Friday.
  3. Place a rule of when to stop trading.

1. Fixed Number of Contracts

Your fixed number of contracts is going to depend on your account size.

How do you identify how much you should risk?

Everyone’s account risk is different, but I would start trading with 10% of my account and only risk 10% of that particular trade should the market turn against my trading system.

This puts your overall account risk at 1%.

Set a rule for yourself to only trade ‘X’ number of contracts per trade for Monday through Wednesday, Thursday, and then lower your size on Friday by half.

This next part of your risk management strategy goes hand in hand with the fixed number of contracts you set for yourself.

#2. Limit Your Number of Trades Per Day

This rule is extremely important when it comes to managing your risk.

You’ll want to establish a ground rule of how many trades you’re allowing yourself to take per day.

[Ex.]

Since we know Monday-Wednesday are less volatile, we can set a max of 3 trades per day, while honoring your fixed number of contracts per trade.

Because Thursday tends to have more moderate risk, we can limit ourselves to a max of two trades on that particular day.

And with Friday’s being the most volatile day of the week, we can set a rule to only make one trade on Friday, granted that our setup presents itself to us, otherwise we don’t trade that day.

This risk management strategy allows us to refrain from overtrading on riskier days, while allowing us to potentially profit largely on less volatile days.

But the goal is to have significantly larger wins than losses, so how do we tie it up altogether?

By placing a rule of when to stop trading.

#3. Place a Rule for When to Stop Trading for The Day

Placing a rule for when to stop trading for the day is going to maximize your winning potential and minimize your losing potential.

Here’s a way you can manage your risk by knowing when to stop trading for the day:

Monday-Wednesday | 3 Trades Max

If you have two wins in a row, stop trading in order to keep that capital.

A third trade has the potential to both increase your capital, but to also eliminate your wins for the day.

If you have two losses in a row, stop trading and take the ‘L’ for the day.

While a third trade could potentially minimize your losses, the probability of accumulating even greater losses is also there.

If you have one win followed by a loss or vice versa, it’s okay to take the third trade to either end your trading day with some profitability, or minimal loss.

You may decide to not enter a third trade if after your second trade you’re still profitable or are merely facing a small loss; the choice will highly depend on whether your ‘edge’ presents itself to you or not.

Thursday | 2 Trades Max, Friday | 1 Trade Max

The same rules apply for Thursday and Friday except they are already limited to 2 trades on Thursday and 1 trade on Friday.

Since the market tends to get more volatile as the week progresses, limiting how many times you trade on Thursday and Friday will help you keep more of your gains made throughout the week.

You may decide to only trade once on Thursday and not trade on Friday.

This is good risk management as well.

By limiting the number of trades you make per day and number of contracts you take per trade on Thrusday and Friday, you eliminate big risk.

Any win you have on Thursday or Friday are merely extra gains to top off your week.

And if you have any small losses, they shouldn’t affect your bigger gains from the previous days, granted that you have a proper trading system in place.

But that’s another article of its own.

The Best Indicators to Trade SPY // Lesson.

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