Which futures are better to trade on the Moscow Exchange: analysis, volumes, and strategies

The stock market has long ceased to be exclusively a place for buying and selling shares. Today, it is a full-fledged platform for implementing various financial ideas, and one of such instruments is derivatives. There are different ways to trade them, and everything depends on the chosen approach — from the level of risk to potential profit. Let’s explore the existing options trading strategies, how they work, and what they can bring.

What are options and how do they work

Derivative instruments are not obligations but rights. More specifically, the right to buy or sell an asset at a pre-agreed price within a set period or until it. It’s simple: if market conditions are in your favor, you can use derivatives to secure a profitable deal. If not, you can limit yourself to the loss of the option premium (the cost of the right itself) without taking any action.

Option agreements come in two types — call options and put options. Each of them allows you to develop a tactic based on forecasts regarding the direction of the underlying asset’s price movement.

Key terms: strike and breakeven

To understand the formation of a trading plan, it is important to start with an understanding of key concepts. The strike of a derivative is the price at which an asset can be bought or sold, the option premium is the amount paid by the buyer for the right, and breakeven trading is a situation where the final profit equals or exceeds the expenses, including commissions.

All further approaches are variations and combinations of these three parameters with different levels of risk, protection, and flexibility, depending on the investor’s goals and expectations.

The need for trading algorithms

One thing is to predict where the price will move. Another is to profit without falling victim to unpredictable changes. Options trading strategies allow you to predefine loss limits and potential profits, act within scenarios, and not be swayed by panic.

In addition, option tactics provide the opportunity to profit not only from growth or decline but also from sideways movement — when the market is simply “standing still.”

Popular strategies

Among the basic behavior models frequently used by traders, there are several proven solutions:

• covered call — selling a derivative on growth when holding shares in the portfolio;
• protective put — insuring open positions against decline;
• bull spread — simultaneous purchase and sale with different strikes betting on growth;
• bear spread — similar but betting on a decline.

These approaches are easy to implement, suitable for beginners, and provide an understanding of how options work in real conditions.

Complex combined tactics: strip, strap, reverse spreads

If basic methods seem too dull, you can move on to more complex structures. They require more attention to detail but offer flexibility and the ability to trade in uncertain conditions:

• strip strategy — an aggressive bet on price decline with limited risk;
• strap strategy — betting on a strong upward movement with limited losses in case of a decline;
• reverse bull and bear spreads — used when expecting sharp price jumps, regardless of direction.

The options are selected based on volatility forecasts and the desire to maintain breakeven trading even in case of a directional error.

Choosing an options trading strategy based on the market

The choice depends on several factors: the current situation, the level of risk, the time horizon, and the size of the available capital. For calm trading, spreads and neutral structures are more suitable. For turbulence, directional plans with hedging are preferable. The main thing is not to try to cover everything at once.

It’s better to focus on 1–2 methods and master them. This approach yields results, unlike jumping between schemes.

Tips for beginners in options trading

The first steps are often the most memorable, especially if they lead to losses. To avoid common mistakes, consider:

• using only the part of capital you can afford to lose;
• avoiding complex positions without understanding all risks;
• controlling emotions and avoiding impulsive decisions;
• regularly reviewing positions based on changing circumstances;
• monitoring liquidity to avoid getting stuck in a trade.

Practicing with small volumes is a reliable path to stability.

Risks of options trading and how to control them

Like any leveraged instrument, option agreements offer great opportunities while simultaneously increasing the chances of a setback. The main risks are associated with losing the entire premium, unforeseen volatility, incorrect assessment of the expiration date, and sudden changes in the direction of the underlying asset.

Risk control starts with a plan. Each scenario should have a response: close the position, average down, hedge, or wait it out. Spontaneity is the worst ally in business.

Real profit from options trading: expectations vs. reality

Common expectations — doubling the account in a month. Reality — stable 3–5% returns with a clear approach and loss control. Yes, there are “home runs,” but more often, the winner is the one who acts systematically, not trying to catch random luck.

Profit from options trading is not a myth, but it requires discipline, understanding of mechanics, and constant analysis.

Action plan — your compass in the world of derivatives

Options trading is like a journey through unfamiliar territory. It’s easy to get lost without a map. Options trading strategies allow you to move consciously, understanding where the traps are and where the profit points are. They are not magic or a game. Tactics are tools that yield results with a sound approach. The key is to learn how to handle them correctly.

Strip and strap strategies, reverse bull and bear spreads — these are options, not guesswork. Understanding how options work, their characteristics, and how to build a plan tailored to your goal turns trading into risk-conscious management, not a gamble on luck. The main thing is to learn to use knowledge wisely and not blindly rush into purchases.

The world of investments entices with opportunities, but often scares with complexity and seeming risks. Many dream of passive income and financial freedom, but do not know where to start and how to avoid mistakes. How to become a successful investor? First, you need to understand: it’s not luck, but the result of knowledge, strategy, and discipline. In this article, we have gathered valuable advice from professionals that will help you navigate the intricacies of investing, develop an effective approach, and confidently move towards your financial goals.

When to Start Investing

Investments do not require timing, they require a start. The best time to start is yesterday. The second most effective time is today. In 2008, the S&P 500 index plummeted by more than 38%. Those who started investing on the decline had tripled their capital by 2013. The market does not wait.

A start does not require millions. Just 1,000 ₽ and access to a brokerage account. With regular investments, even a minimal capital can eventually turn into a substantial portfolio.

Investment Strategies That Work

Anyone who wants to understand how to become a successful investor must master the basics of strategy. The difference in returns between a passive investor and an active trader is significant, but the average return of a passive approach to the S&P 500 index over 30 years is around 10% annually. This is higher than inflation and bank rates over the long term.

Effective strategies:

1. Long-term investing. Involves buying and holding assets for a period of 3 to 10 years. Ideal for those who want to grow their money without constant monitoring.
2. Portfolio rebalancing. Once a year is the optimal frequency. Allows adjusting the distribution between stocks, bonds, and alternatives without losing control.
3. Dollar-cost averaging. Monthly purchases at a fixed amount reduce risks and smooth out volatility.
4. Real estate investments. This strategy requires initial capital but provides a stable cash flow and hedges against inflation.
5. Growth stocks + dividends. A combination of growth and passive income is the optimal path for balancing returns and stability.

Each of these strategies demonstrates sustainable effectiveness in conditions of market uncertainty and is suitable for forming a balanced investment approach. The application of the chosen model in practice depends on the goal, investment horizon, and acceptable risk level.

How to Become a Successful Investor and Overcome Fear of Investing

Fear is the main enemy of anyone who wants to understand what it takes to invest profitably. It is provoked by news, market downturns, and “experts” from social networks. The key is not to avoid risk but to manage it.

2020 story: in the midst of the pandemic, the NASDAQ index lost 30% in 4 weeks. Panic even gripped experienced players. But those who held their positions saw growth of over 80% by the end of the year.

Effective asset management begins with understanding one’s own risk tolerance. Conservative investors will find bonds suitable, moderate ones – index funds, and aggressive ones – growth stocks.

How to Preserve Capital During Market Downturns

Investing for beginners always includes the first crisis. The lesson is that market panic opens up opportunities. During a 20–30% decline, stocks trade at a discount, thus offering growth potential.

Preserving capital requires discipline:

• clear portfolio structure (70% conservative assets, 30% risky assets);
• mandatory cash reserve for 6 months of living expenses;
• avoiding selling at the peak of fear.

Downturns occur every 5–7 years. Those who invested $10,000 in 2000 and held the portfolio without selling received over $45,000 by 2020, despite the crises of 2008 and 2020.

How Often to Monitor Your Investment Portfolio

Excessive control reduces profitability. Studies in Behavioral Finance have shown that investors who check their portfolio daily make unjustified trades twice as often.

The optimum is quarterly. This frequency allows timely reactions to changes while maintaining a strategic focus. Emergency checks are possible when macroeconomic conditions change – sanctions, rising rates, geopolitics.

Portfolio and Its Anatomy

A portfolio is not a collection of assets but a functioning organism. Each asset plays a role in it. Bonds are the skeleton, stocks are the muscles, gold and currency are the immunity.

When forming a balanced portfolio, the following are taken into account:

• age (the younger the investor, the higher the share of stocks);
• financial goals (accumulation, purchase, retirement);
• level of risk.

Example: a $100,000 portfolio in 2024 may include 50% S&P 500 ETF, 30% corporate bonds, 10% trading investments (crypto, futures), 10% gold.

Investing in Stocks: The Foundation of Capital Growth

A stock is a share in a company, not a mythical “paper asset.” By buying a stock, an investor acquires a part of the business. Apple, Amazon, Nvidia – all started at $10 per share. Today, the market capitalization of these companies exceeds $1 trillion each.

Investing in stocks is a long-term driver of growth. The level of risk is higher, but the potential return exceeds that of bonds and deposits by 2–3 times. Over the past 10 years, the average return of the S&P 500 has been 13.6% annually.

Speculator or Investor: Clear Distinction

There are two types of players in the stock market: speculators and investors. The former focus on short-term fluctuations, while the latter focus on fundamentals. A speculator loses on emotions, an investor earns on strategy.

Investing in real estate yields an average of 7–9% annually through rent and up to 15% through resale. Unlike speculation, this asset is less volatile but requires time and analysis.

Finance, Economics, and Analysis: The Strategic Foundation of an Investor

Deep analysis of the economy, financial reports of companies, and macroeconomic indicators allows for calculation rather than guesswork. Without it, it is impossible to understand how to become a successful investor – the arsenal must include not only intuition but also metrics.

The U.S. market is the largest by capitalization, accounting for over 40% of global assets. The stock market in Japan, on the other hand, maintains stability in conditions of weak growth. The development of the Indian economy shows double-digit growth rates, opening a niche for investments in local indices.

Capital allocation within the portfolio is based on analysis: P/E, ROE, EBITDA, dividend yield. Each indicator is a potential return and risk level indicator.

Crisis as an Entry Point into Investing

Any crisis is not the end but the beginning of a cycle. During an asset collapse, assets lose face value but not worth. The most reliable fortunes in history were created precisely at such moments. A crisis weeds out the weak but strengthens the strategists. Hence the logical conclusion: a systematic approach is more important than market sentiment. When the system works, investments work.

Conclusion

Becoming a successful investor is a path that requires learning, patience, and discipline, but it is accessible to everyone. By applying the advice of professionals in practice, you will not only effectively manage your assets but also significantly increase your capital. Start today, and let your investments become a reliable foundation for future prosperity.