A day trader is a type of trader who conducts a sizable number of short- and long-term deals to profit from intraday price movement in the market. Profiting from very brief price changes is the goal of a day trader. Leverage is another tool day traders can employ to boost returns. However, when done improperly, it can also boost losses. Day traders typically hold their positions from just a few minutes up to a few hours. Day trading positions are closed before the end of the trading day, to avoid overnight or after hours risk exposure as a result of disappointing earnings reports and/or negative news. Day trading is an advanced style of trading.
This week we are going in with the Vertical option strategy on QQQ (Nasdaq ETF). The reason for choosing this option trade is that we are learning to choose a direction and how to trade that choice. QQQ has been on a crash course recently to the downside. As contrarians, we will bet the stock stops and heads up from here over the next 45 days and use a Short Put Vertical to trade that assumption. Watch this video to get the trade details. Hope you enjoy it! Kal Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability