Options trading is a profitable approach that lets you earn profit from the underlying asset’s price fluctuations and mitigate risks. However, to navigate this complex landscape effectively, you’ll need a fast and reliable and broker to execute your trades with precision.
That’s where the TradingView platform comes in. The TradingView desktop free is a powerful tool that equips you with advanced features and functionalities to help you trade smarter and faster. You can access this platform with ease by opening a broker that has integration with TradingView such as Dhan.Â
This guide will help you make smart decisions and optimize trades in simple 3 points to make you a better trader.
1. Leveraging TradingView for Market Analysis
TradingView Desktop is a versatile platform for options traders, providing access to real-time market data and advanced charting tools.
To get started, simply select your desired asset and time frame to view real-time price movements. Customize charts by adding technical indicators like:
- Bollinger Bands: Bollinger Bands consist of a moving average and two standard deviation bands, helping you identify volatility and potential price reversals in financial markets.
- MACD: The MACD (Moving Average Convergence Divergence) indicator gauges a security’s trend strength, momentum, and potential reversal points by comparing two moving averages.
- RSI: The RSI (Relative Strength Index) measures an asset’s overbought or oversold conditions, helping traders identify potential reversals or trend strength on a scale of 0 to 100.
To scan for trading opportunities, you can also use TradingView’s powerful screener. Create custom scans based on your preferred options trading strategies.
2. Optimizing Trade Execution with Precision and Speed
TradingView Desktop empowers you to execute orders directly from charts, offering speed, precision, and convenience. To place trades, follow these steps:
- Chart Analysis: Begin by analyzing your preferred options contract on the chart, identifying entry and exit points.
- Order Placement: Right-click on the chart, select “Trading,” and then choose “Order.” This opens a trade panel.
- Order Types: TradingView offers various order types, including market, limit, and stop orders. Select the one that suits your strategy.
- Setting Parameters: Specify the contract size, order quantity, and any stop-loss or take-profit levels.
- Order Confirmation: Review your order details and click “Place Order” to execute.
Trading from charts includes various advantages such as real-time visualization of price movements, quick execution, and reducing the chance of errors.
Dhan lets you trade directly on Tradingview Charts for free with its integration, making it one of the best trading platforms.
3. Strategic Risk Management and Growth
TradingView Desktop makes it easy to keep an eye on your portfolio.
- Create a watchlist to track your favorite options.
- Set up alerts to get notifications when prices hit your target.
- Use performance reports to see how your trades are doing.
It’s all about staying organized and making smart choices to grow your trades.
For risk management, set stop-loss orders to limit potential losses and trailing stop-losses to secure profits as prices rise. Consider hedging strategies like buying puts to protect against market downturns. Lastly, diversify your portfolio to spread risk and never pour money into a trade that you can not afford to lose.
By combining these tools and practices on TradingView Desktop, you’ll be better equipped to safeguard your trades and make smarter decisions as a beginner options trader.
Conclusion
Trading smarter and faster as a beginner options trader is within your reach with TradingView Desktop. When you couple this platform with the best broker for option trading, it provides the essential tools and knowledge you need.
Start by downloading TradingView Desktop for free and consider opening a demat account with Dhan, the best trading platform. Your journey to profitable options trading begins here.
Also Read: Finbok Review: A Detailed Look at the Platform’s Features and Offerings
