Neutral Trading vs. Directional Trading

Most people love the thrill of directional trading

Neutral Trading vs. Directional Trading

Most people love the thrill of directional trading. The prospects of huge gain within a few days or even a few minutes are exciting and mentally satisfying for hitting the jackpot. But this speculative punting comes with a price. Other than the emotional stress, time demand, and – very often – the loss of confidence, the potential of big loss of your hard-earned money is tremendous. This is mostly stemmed from the fact the novice investors have little experience in the trading.

options call

Directional Trading

In directional trading, you begin from a position of loss – the bid-ask spread (slippage) and commission take a bite of your money first, unless the asset moves. If the asset is not moving from where you started or worse moving in the opposite direction, you are in for a definite loss. In the financial markets, the probability of any asset remains within a range of prices is very high. And, you are looking for a gem that can leapfrog higher based on the tools you learned from books, courses, etc. This is an exhausting activity. As a matter of fact, most of the time you can expect to give back all the profits to the markets.

Neutral Trading

In neutral trading such as Iron Condor, you begin with a position of profit. The asset can stay put, your profit will start showing. Even if it moves away, we are still looking at a profit if it remains within a zone. You will be very comfortable and pleased if the asset makes a U-turn back from a trend. This is not something directional traders like to see. And, we can see this happening all too often.

This is the advantage of neutral trading.

options call

Neutral Trading

In neutral trading such as Iron Condor, you begin with a position of profit. The asset can stay put, your profit will start showing. Even if it moves away, we are still looking at a profit if it remains within a zone. You will be very comfortable and pleased if the asset makes a U-turn back from a trend. This is not something directional traders like to see. And, we can see this happening all too often.

This is the advantage of neutral trading.

What is an Option?

We have used an option many times in our life time. When you buy an insurance policy, you buy an option. When you place a deposit for a house you want to buy, you have bought an option. When you buy a movie ticket, you have bought an option…

Types of Options

There are two types of options: Call and Put options. These two options function the same except for the opposing market conditions.

Neutral Trading vs. Directional Trading

Most people love the thrill of directional trading. The prospects of huge gain within a few days or even a few minutes are exciting and mentally satisfying for hitting the jackpot. But this speculative punting comes with a price.

Why do you want to trade with this Iron Condor system?

Iron Condor Academy merely wants to help you set up the trade correctly. Any experienced traders will tell you that the nuances of a successful trade from beginning to the end are what you should be learning, NOT FOCUSING on finding the right trade entries/signals – which is the mainstay of other directional trading systems.

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Contact

Phone

+603 7848 5957
+6018 216 6211

Email

askme@ironcondor.com.my

Address

2 Jalan PJU 1A/7A, Level 7
Oasis Wing, Brunsfield Oasis,
Tower 3, 47301 Petaling Jaya,
Selangor, Malaysia