Ways To Success In Option Trading
Hi, I hope that your portfolio is growing
Hi, I hope that your portfolio is growing. This is part two of a series of six articles including a video for each article. If you are interested in learning how to trade options, I recommend you watch all six videos.A very important step in learning to trade options is to spend a lot of time back testing your trades. There are just a few option software programs on the market at this time that can help you with this task, but learning to trade without costing you a dime is worth your time. I learned a lot by using Optionvue and/or Think or Swim to back test my option trades. These two software bundles have been very good, but now San Jose Options has just released a new type of back testing tool called the "Options Toolkit." With this back tester you will save a lot of time in comparison to any other options testing software.
Option Trading : Steps to Success
Before, back testing one year of Condor trading using Optionvue would take one hour. Using Think of Swim is relatively quicker to do the same. But with the extraordinary Option Toolkit, doing the same back test will be finished in just 2 seconds. Yes, two seconds. And not only that the Option Toolkit can finish the test in a wink of an eye, it can deliver you more and better organized data than any other software can.
Another step in finding success is simply trading for many years. We all call it "experience". The reason behind this is the stock market is constantly changing. In order to see all sides of the market, we need to trade for many years. There is no other way to gain this kind of "experience".
Paper trading is an excellent way to learn how to trade options. It is easy to get access to a Paper account. You can open up a free trading account with Think or Swim and/or almost any other options broker. This will give you the practice you will need. It may be difficult, but it is very important to paper trade for at least six months to a year. Remember, it is very important to gain experience over time, and paper trading is one way to gain this experience without risking any money.
At last, I would like to tell you that you should keep about 25% of your capital in cash. This is very important! The best option trades always require adjustments. In order to make these adjustments, you will need extra cash. It is very dangerous to use all of your spending money in your trading account. Every option trader leaves lots of money in cash in order to make adjustments. You need cash to lock in profits and manage your portfolio as needed. Keeping this cash helps you to be a successful trader.
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