I trade stock options directionally. I buy either "call" options (betting that the stock will increase in price), or I buy "put" options (betting that the stock will decrease in price). I base my buying decision purely on technical analysis, as opposed to fundamental analysis. My time frame for being in the trade is anywhere from a few days to about 6 weeks.
I'm not going to go into many definitions on this blog. You've been smart enough to find this website, so you're smart enough to look up the definitions online. Sorry, just not enough time to do that here.
A good resource for trading definitions is: www.investopedia.com (if this is not a link, then just copy and paste into your browser).
I primarily got most of my style from a former Investools Instructor, and current website subscription trading provider, Jeff Kohler. I also got some of my style from another current Investools Instructor, Dave Johnson.
Jeff, as well as myself, looks for lower risk/higher reward opportunities. Not every trade works, but if you keep your risk low and your reward high, then you will have a successful system.
As I said in the beginning, EVERY trader is unique. I don't trade EXACTLY like Jeff Kohler, nor anyone else. I trade EXACTLY like one person only - myself, and I encourage you to do the same.
One final note: I would HIGHLY ENCOURAGE you to first read a book that dives into your psychology, as this will help you identify which trading style may be best for you. The book is by Brett Steenbarger and titled "Enhancing Trader Performance: Proven Strategies From The Cutting Edge Of Trading Psychology". I read this just a couple of years ago and wish that I could have read it at the start of my trading - it would have save me TONS of money. Seriously, read this book first before you do anything else.
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