Day traders have a whole lot of obstacles to contend with on a daily basis. Many of these obstacles have to do with the systems in place. A chart will cover many of these obstacles. A smart chart will look at multiple angles to get the most out of each and every trade.
A typical chart set-up includes protective buffers. The first is the basis of the chart, such as a volume-based design or a time-based design. Over time or over volume (and often both) investors will discover patterns to protect from potential pitfalls. The chart should also have indicators. Markus Heitkoetter on LinkedIn uses three main indicators to help in his charting.
The obstacles spread everywhere and they can come in at any time. Fortunately, savvy day traders learn to spot them. Short sales often rely on borrowed shares. Sometimes, the stock is just not available. Brokers can actually be unable to locate shares. The transaction cannot be initiated. Hard-to-sell lists can actually enclose certain shares from being available in certain markets. Extra fees can be paid to acquire the shares.
Puts and Calls
These are just a few of the potential problems that can occur. Now, put and call options will circle around some of these potential issues. Put options place restrictions on sale, but they could protect investors. Call options allow investors to buy at a certain price and at a certain time. An investor can buy an option at $5. If the stock becomes available at $25, they still have the bought option for $5. They may have this available for a week-long period. Put options work in a similar way, but they apply to the sale of a share.
CBOE is a lovely resource for option buyers. Also, the website for Markus Heitkoetter covers many variables in options buying for new day traders. Visit his Linkedin page or official website for more details. There are also many YouTube videos available that cover how to create a chart and explore put and call options to wonderful effect. Use LinkedIn, YouTube, and the website as resources to make money today.