Aug 14: Online Option Stock Trading Tips for the Day Trader

by David Jenyns on August 14, 2006

There are plenty of online option stock trading tips for the Day Trader. In fact there are so many that you really have to carefully assess the information before you act on it. Day Trading has a somewhat erroneous glamorous image attached to it but in reality it is very dangerous.

Have Money to Burn or You may get Burned

Before you even consider becoming a Day Trader, you need to have plenty of capital. You have to have plenty of capital that you’re willing to lose. You have to have a keen eye to watch many markets all at once and be able to act instantly.

The best online option stock trading tips Day Traders can heed is never, never trade on borrowed money. Hundreds, maybe thousands of overzealous Day Traders have gone bankrupt and beyond by trading on borrowed money. Because of this and the very instant nature of Day Trading, it has been compared to gambling more closely than it has to investing in the stock market.

Day Trading is exciting, there’s no doubt about that. However, to wager your whole financial future on one trade or a series of trades is not the mark of an investor but a gambler. A problem gambler at that. Never make a trade after receiving blind online option stock trading tips.

You can be successful at Day Trading but success does not come overnight or day as the case may be. Anyone can learn the fundamentals of Day Trading yet, and this is the best of the online option stock trading tips, what separates the winners and the losers in this venue is often not the lack of knowledge but the lack of discipline. You can not trade on emotions or “feelings.” You have to learn the basics and apply specific knowledge and reasoning to the trades you make.

Online option stock trading tips to heed

You have to realize too, that to let a profit or loss of $10,000 hang on whether or not your internet connection holds up is more than scary. Regardless of what happens to your connection you can not undo what has been done. Suppose you see a stock going down and you are hoping to see a spike but you have decided you will get out if the stock hits such and such price. What then, is going to happen if a backhoe 2 blocks over hits a major cable and you lose your internet connection?

Online option stock trading tips usually focus on what stock to watch or at what price to cash in your stocks but with Day Trading you have to instill some fundamentals before you can even start trading. What this means to you is akin to the mindset of leaving in plenty of time to get to work in case you have a flat tire. If you leave with just enough time to spare to get to work on time if nothing untoward happens, you will be late much of the time. Heavy traffic, construction, inclement weather – there is always something to slow you down so be prepared.

In the same way, if the $10,000 trade you’re working on is going to mean whether you can pay your bills or not or whether or not you will lose your house if you don’t profit, or worse, lose that $10,000 then you’re in over your head. Even if you win this risky round, you will never make a profit at Day Trading.

Don’t make a split-second decision on online option stock trading tips. Even though these trades happen very quickly and seconds count, you will have a much better chance at succeeding at Day Trading if you do your homework fist.

It takes a lot of patience and persistence to be a successful Day Trader Learn everything you can learn before you make your first trade and then make it with money you won’t cry over losing.

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