Trading Options and the Bear market
By ALobos
@ALobos (8)
United States
March 18, 2007 1:09am CST
I was wondering if anybody out there has some experience in trading stock options online and what you look at when doing so? Also was wondering if you can sell borrowed stock online like some day traders do out on wall street in hopes that the market goes down (a bearish investor) and rebuy the stocks profiting the difference? Is this something anyone can do or just day traders and if I can, how? I'll appreciate any help I can get since i'm new at this online investing thing.
1 response
@sunslinger (474)
• Singapore
9 Apr 07
Hi Alobos,
I've some experience in trading in options and equities, but not necessarily making money. Since you are referring to online trading, there are only limited markets for you to trade in options namely, the American and European markets, to generalize a few. I trade in the American market and because of this, do not get much sleep on weekdays as they are 12-13 hours behind us (follow their eastern time or ET and assuming you're either from Malaysia or Singapore or somewhere in the region).
With online trading, you have much more tools to trade. I can refer you an excellent trading platform to you if you're interested. But before you jump for joy, I really encourage you to find out more about options especially with its own jargons, such as in-the-money, out-of-the-money, put and call options to name a few. Pick up a good book or try searching online.
And by the way, you can short normal stocks (sell first, buy later). The mechanics of it is a bit more complex due to whether you have a margins account and whether you are trading on KLSE or SGX. SGX is more flexible.
Hope this helps.
Sunslinger.