A bullet trade is a secondary market trade that involves the act of purchasing an in-the-money option on a security so that the option buyer can effectively capitalize on the move in the underlying security without, in some instances, waiting for the exchange mandated price change.

ALWAYS match the bullet type to the shooting activity and intended target. ALWAYS understand how far your projectile can travel before you take a shot. ALWAYS know what is in front of and beyond your target, in the path of your bullet. ALWAYS transport your ammunition separate from your firearm.

A trade transaction occurs either when a buyer accepts the asking price or a seller takes the bid price. If buyers outnumber sellers, they may be willing to raise their bids to acquire the stock. Sellers will, therefore, ask higher prices for it, ratcheting the price up.

Rule 1: Always Use a Trading Plan. Rule 2: Treat Trading Like a Business. Rule 3: Use Technology to Your Advantage. Rule 4: Protect Your Trading Capital. Rule 5: Become a Student of the Markets. Rule 6: Risk Only What You Can Afford to Lose. Rule 7: Develop a Methodology Based on Facts. Rule 8: Always Use a Stop Loss.

A day trader tries to make money one of two ways. If a day trader sees that a stock is moving higher or thinks that it might go higher that day, they'll buy the stock and then sell it once its value goes up. But if the stock's value drops, then they'll lose money when they sell it. Pretty straightforward!