Key Trading Strategies and Risk Management
Previous Class LINK:
Three Core Methods:
Trading within a defined zone
Breaking consideration analysis
9, 13, 50 moving average strategy
Price Gap Risk Assessment:
Risk Level
0.0 - 0.30 High Risk
0.3 - 0.6 Medium Risk
0.6 - 0.9 Low Risk
Contract Price Guidelines (Same-Day Expiry):
Price Range
0.09 - 0.15 HIGH RISK Avoid consolidation at entry
0.15 - 0.35 IDEAL Optimal contract size
0.40 - 1.00 MODERATE Tradeable, but lower profit potential
Golden Rule: Always aim to stay at-the-money for optimal risk-reward balance.