In part, day trading options is very similar to trading stocks, indices, and other securities. First and foremost, you need to know how to analyze stocks so you know whether they are worth trading at all—but the type of assets you will trade will depend on your overall strategy.
What is a day trader?
Day traders are typically well-educated and well-funded. They use high amounts of leverage and short-term trading strategies to capitalize on small price movements in highly liquid stocks or currencies. Day traders are attuned to events that cause short-term market moves. Trading the news is a popular technique.
What are the benefits of simplicity in day trading options?
Simplicity has huge benefits in day trading options. It’s a great philosophy, and it applies especially well to day trading options. Avoid the fancy stuff. Unless you are a seasoned options expert there is much working against you. And that’s only a partial list of the things working against complex positions.
How much of the $1,000 loss came from day trading options?
Careful inspection reveals the entire $1,000 loss came from day trading options. The reality is a 50% loss for the strategy that is day trading options. Prevent filtering options trading results with rose colored glasses.
