I am not a day trader but it is nice to have that option to trade like a day trader. So about three weeks ago February 15 I set out a simple plan to attempt my first day trade, I wanted to see if I can do it. I was looking at Netflix NFLX and was looking at the options and saw a call option 130 at the time it was priced at $60. I did not want to buy it feeling it was priced at full retail. Like any other consumer your looking for a items to go on sale. I would settle for a price at $50. If i got at that price I would immediately sell it at $85. This is a day trade plan. I do not want to be greedy so I’m willing to take a small profit for a short amount of time. If you have broker they should be able to set up at Conditional Order:
Definition of ‘Conditional Order’
A type of order that will be submitted or canceled if set criteria are met, which are defined by the trader/investor entering the order. This allows for a greater customization of the order to meet the specific needs of the investor.
So I put a conditional order the night before and went to sleep. I do not want to watch the market every second at the opening bell. How ever the next morning my order was executed and finished. The marked moved so fast my orders were bought and sold ,at five call contracts @50 each 5*50=250 bought $250and sold 5*85=425. 425-250=175. 175-30commision=$145. I started my day out with a $145 smile on my face. I started out with a plan and it worked maybe i got lucky who knows. But this is the stock market, If the market changes direction then I could have easily lost the money. Losing money at the end of day is not a good thing.
My question is whats your day trading plan?