Should You Day Trade Options ?

When it comes to the business of trading every one wants to be rich overnight. That is why we have such a high mortality rate. It gets worse when it come to options trading. The high leverage makes options trading look very attractive to novices, who look at one side of the coin,that is, the profit side. What the novice option buyer tends to forget is that, unlike stocks, when you buy options and get your reading wrong you can potentially loose all your investment.

Options trading is a high risk business.It needs careful study, in depth knowledge and feel of the markets to prosper and profit. When you are aware of your potential loss and trade with a well laid plan your chances to profit get better. That brings us to our topic, should you day trade options? my personal experience and common sense says a big NO!

Day trading in itself is a high risk game. Combining that with the huge spreads that options have in our markets make it riskier. Why do business with such odds against us. So, if you think that day trading options is the easy way to riches please rethink. Options trading is a strategic way of making money and a game of patience. Learn to trade like the hawks, wait till you find the right trade and stick to your strategy.