Thursday, December 15, 2011

How to Make Money Day Trading Options

Will It Rain Money in YOUR Portfolio
This Year?
When I was learning how to make money day trading options I spent the bulk of my time doing research. Although this was obviously many years ago, the key to successfully figuring out how to make money day trading options lay in the ability to find stocks which were likely to "pop" in one direction or the other. Back then one of the major problems with starting out was raising enough capital to trade profitably. Nowadays it is much easier to find ways to participate in the options market without needing a mint to get started.

Low Capital Traders Choose Binary Options

One of the nice things about all the advances in technology - and to some extent investing without borders - is that tons of new opportunities have opened up for traders with minimum capital to invest. Many finance students graduate college with a heck of an education but no place to apply that knowledge - simply lacking the capital to profitably trade. These days with a couple hundred bucks and a decent knowledge of markets opportunities to day trade are everywhere. Among the best of those for low cap traders trading binary options. With a feel for market direction and a willingness to take some risks, binary options can make $300 a day with as little as two $200 investments.

Finding Good Trading Signals

Once you have committed to learning to trade online the next question you have to ask yourself is, "How do I know when a stock is going to pop and which direction will it go?" This is the million-dollar question isn't it? Or is it? In today's market it is far more likely to make $300 a day 10 times than $3000 in a day once. This is because market software programs try to find hidden prices of securities for sale without committing capital. Stock prices will pop up just a little to test what orders appear in the market then will either absorb the shares (if the price is cheap) or wait (if the price is expensive). This rapid up and down movement tends to make large institutions try to hide movements from into and out of shares. As a result there are fewer large one-day swings than there used to be. Fewer large one-day swings means fewer homerun option trades. Some specialist firms track momentum and trading trends that trigger trading signals to their subscribers.

Learning How to Make Money Day Trading Options Today

The key to learning how to make money day trading options today then becomes a study in how to make use of smaller movements in prices but still earn high yields. For the low capital investor we've already decided that means trading binary options - but for the moderately capitalized investor options trading still provides a high leverage high return means of putting capital to work.