I've been trading futures and spot forex but coming back to stock options...have not traded them in about 6 or 7 years...I think that options may be better suited for me as able to hold overnight and they do not have the price jumps that futures and forex do after you get in the trade...yea I understand I can only use my cash once per day and will look to make one trade per day or swing trade...thinking that QQQQ or SPY options are the way to go..perhaps even USO or GLD options...again..will freshly fund my optionsxpress account with a $2,000 in total balance...what are some other options to trade once per day or swing trade?MSFT?etc
Before you start using the leverage options give you, first have a working strategy and trade the etf's with it; after consistency feel free to lever up
You must trade an underlying asset that feels comfortable to you. If someone tells you that he makes a bundle every day trading QQQQ, what does that have to do with you. What stocks/indexes have you been watching for a long time? Which ones can you make the winning decision on how it behaves under various market conditions? Which one are you confident to place the bet (buy puts or calls) that it will move in your direction soon? Do you understand that if you buy calls and the market rallies that you will earn less (may even lose) than you will earn if you buy puts and the market falls? Most people don't recognize that trading requires skills that take time to develop. Mark http://blog.mdwoptions.com/options_for_rookies/
thanks...totally not a rookie here but...what do you mean on the above and what kind of research backs it up?somethin does not sound accurate..please clarify
Implied Volatility will go down if the market is rallying, whereas if it is falling it will go up, as I understand it. Try trading QQQQ and if you are doing well in anticipating moves then consider using options. I've read a few of your posts in the past and it seems like you just want to get into exciting, fast-paced and overleveraged instruments (for your account size), and then when your account blows out you move to the next exciting, fast-paced and overleveraged instrument (for your account size). Just trying to prevent another blowup