Ok, so I just jumped into the trading game after being laid off. I have a small amount of play money to work with, which is just fine. But looking at these charts, almost everything took a slight up trend through december. I'm guessing over the good holiday shopping feelings. Then from january until now we have been about level to slightly trending downward. I cant make heads or tails about what is going to happen. It seems short term things are going to run up a little. However, I'm taking things on a day by day case. So my question is, on a down day, what are some strategies I can use to make money day trading with options. I'm fairly new to options and it seems as though you can make as money when the stock goes down, as you can when the stock goes up. But I'm probably missing something. So are there some strategies I can study? Thanks, Eric
Dude, you are going to lose that money in a hurry. A time-tested strategy you should consider is getting your resume together and picking up the classifed ads in your local Sunday paper. That is going to be your best bet. Use that money to stay afloat until you find the next job. Trading is always going to be extremely difficult, especially in this environment. Compound these headwinds with your idea of daytrading options and you are guaranteed to fail. Sorry to reveal the truth to you, I am just trying to help a brother out.
Div speaks the truth. Nothing can replace having a job that provides a steady stream of income. Why do you think a lot of traders become vendors and sell systems instead of trading. 90% of traders don't make money and quit. Jesse Livermore once said that one should never expect to get money from the stock market.
stop trading immediately if you are asking a question as basic as this. do some reading and watching the market and then try to trade a year from now.
I appreciate the concern, I guess I should have been more clear. The money I have in my trading account is money I can afford to loose. I have been studying the stock market for a long time, I understand how it works. But I'm new to options trading and I prefer to learn by doing. Any suggestions for strategies? Suggested reading?
It's his money, if he wants to trade it then that's his business. Losing money is the best education out there. You guys need to chill out and stop trying to tell him to get a job. Obviously he knows what his job options are and the comments about the want ads come off as pretty condescending.
Take this money out of your brokerage as fast as possible. There are many ways to lose money in this market right now and you obviously have never had a lesson in capital preservation. You're moving way too fast and are expecting a quick fix because you lost your job. You will soon be questioning yourself as to what went wrong and how did it happen so fast. No BS hold on to your money because there is no room to be learning in this environment the way you are trying to. If you are not going to take my advice at least wait until after 7:30 numbers tomorrow.
Bad idea, especially if you're new to the game. Even worse given a small account and "needing" the income. The pressure to perform will cause over trading over leverage and melt down faster than you could pile your grub stake in the floor and set fire to it. I'm sympathetic to your situation but if successful trading were as easy as it seems, everyone would be doing it.
extremely tough right now, i have traded for 5 years fulltime for a living and i am making 1/5 of what i usually make
Very tough last few months for sure. If you are not trading "scared money" then just make your mistakes cheap and learn from those mistakes. Once you think you have it down, the market will change, so learn how to change with the market and adapt when needed.