Can anyone tell me about the concept of day trading and of stock options?
I've read a lot on day trading and stock options, but I don't completely understand how it works and how the concepts are applied and carried out on a regular basis. Can you explain to me how they work based on the concepts?
Day trading is buying and selling of a particular stock many times throughout the day. Throughout the day, a stock price may change due to several things, such as volume (others buying or selling). Day traders try to take advantage of this by buying the stock on the low swings, and selling it on the high swings. It usually takes a lot of money to do this in order to make it worth your while. Day traders often do this with several stocks at once.
Most on line brokers require a minimum cash account of around ten thousand dollars for you to day trade. I can't remember the rules exactly, but Ameritrade, considers day trading as buying or selling of the same stock within a couple days. And if you have two or three instances of this, they classify you as a day trader.
Stock options are something that employers offer to make a job more desirable. Usually offering company stock on top of their normal pay. Having stock in a company you work for also makes you care more about your company.
powered by Yahoo Answers






























January 1st, 2009 at 1:19 am
day trading is simply trading stock during regular hours which is 930am thru 430pm est, there also premarket and after hours trading. stock options are a gamble that a stocks price will be higher or lower than you buy it for at a speified time in the future, good if your right but bad if youre wrong
References :