Thursday, March 30, 2006

Using DreamTai for Options Trading

Question from a reader:

Can I use DreamTai trading software to trade options and if so, what is the best
way?


You can use DreamTai trading software to find highly trending (Uptrending or
downtrending) stocks with high power rankings and then buy three months or later in the money Calla or Puts for these stocks.

The Power Rankings will help you to filter out the stocks with strong buying or selling volume.

The reason I said three months or later is because we want to give the stocks some time to move.

Please papertrade till you are confident that this method is suitable for you.

Again, all the rules for risk control and money management apply here.