Day Trading

Hi, here is a collection of informative articles about investing. a free online investing tutorial for you.

http://www.investingtutorial.info/

good luck !

wish you make fortune from investing !

IMHO the first three answers you received did not do a very good job of describing what options are. You will get a much better description of options by looking through the first few pages of the tutorial at

http://www.cboe.com/LearnCenter/Tutorials.aspx

<<<I heard that the risk is so much grater than stock.>>>

With options, if you understand them, you can choose how much risk you have, more, the same or less than with stock.

<<<Also can you earn money by predicting which stock will go up or go down ?>>>

Yes with the right strategies. If you simply buy options you should have predictions about which way it will go, how much the price will change, and when the price will change.

<<<Does option trading similar to FOREX?>>>

The only real similarity is that both allow you to use leverage.

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A few comments about some things said in other responses.

All options have expiration dates. Normal options expire on the Saturday following the third Friday of the month, up to eight months in the future. Some stock also have long term options known as LEAPS, which can expire up 30 months in the future. I have no idea why one the responses talked about nine months.

As for the comment that trading options is gambling, that can be true but does not have to be.

Similarly, I would not say most professionals trade options to hedge. When they hedge it is to reduce risk, protecting profits or reducing losses. Most professionals initate option positions to make a profit, then adjust/hedge the position as required.

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One thing to understand is that option traders usually try to profit with predictions about the future volatility of a stock price at least as much as the direction the stock price will move.