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 key step to enhance your option trading competence is to give due time for back testing. A number of software programs to aid your option testing work are available on the market today but the use of such will absolutely eat up a huge amount of your time. I have personally experienced using Think or Swim or Optionvue in back testing my options and these softwares come out really good. Then, I come across this new back tester that can save quite much of your time compared to those I have previously mentioned. This new back testing tool is called the Options Toolkit developed and released by San Jose Options.
It would take me one hour to back test one year of trading a Condor with the Optionvue software. When I used Think or Swim it would be a little faster, but I would get less information. Now, by using “Options Toolkit” I actually gather more organized data in about 2 seconds to back test one year of Condor trades. It’s really a great program!
Experience, too, is a very important factor to consider before you find success in options trading. After many years of watching and breathing the stock market, an option trader can develop extensive experience that will make him quite familiar with the many faces it has. Remember, the stock market is changing all the time.
Another way to become a successful options trader is by paper trading. Through paper trading, you can simply get an account with any options broker and start practicing for free. Paper trading though requires serious concentration and time, and you need to go through it for half a year to a year. But then, experience you will get, and you are in no risk of losing a lot of money as in actual trading.
Finally, you must not lay everything you have in your trading account on the table. You should leave at least 25 percent of your capital in cash. The best option strategies require some necessary adjustments, and you must have the extra pocket to accomplish them. One of the secret behind successful options trading is to leave plenty of money in cash for you to be able to keep your portfolio afloat, to lock in profits, and to carry out trading adjustments.
Looking to find the best deal on Options Backtesting Software, then visit www.sjoptions.com to find the best advice on Trading Options and education.
No comments:
Post a Comment