Learning Day Trading

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?

Public Comments

1. 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
2. Day trading = trading stocks or bonds (securities) with the intention of selling them very quickly (intra day) to make a quick profit without any care as to the long term value or dividend paid on that security. Options = the right to buy someting (securities) at a certain price. For example: If I buy a stock option of Yahoo!, I might pay $10.00 for the right to buy it at $25.00. My hope is that the stock goes to $100 dollar. Then, I cash in my options, pay $25.00 for each $100 share, turn around and sell my $100 share and profit $75.00 for each share. The problem is that if the stock goes DOWN, below $25.00, then I either hold on (I have 10 years typically to hold it before I am forced to sell) or I sell it at a LOSS. If this is the best answer, please vote it the best answer. Thanks!
3. 'Day trading' just means you close your positions at the end of the day. Stock options are not necessarily complicated but they are tricky to learn. I worked in the stock market, trading stocks and options as hedges for six years straight. If you want to try out options, get a book so you know the basics and then get a paper-trading account somewhere. Options are fun, the conservative side of the stock market says they are a 'losing bet' but they can be very lucrative and they require far less capital.
4. 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.