Thread: Best ways to paper trade options?

Quote: Originally Posted by J.Baker Still quite green. I've bought an held a few stocks, "day traded" a few times and I spent 12months trading futures with Ti. Which I've recently put on hold because of the 1:30am starts due to daylight savings in both countrys... Umm, I'm doing okish. I've not lost money on anything yet but at the same time I'm not making a great deal. Around 12% profit over...

Still quite green. I've bought an held a few stocks, "day traded" a few times and I spent 12months trading futures with Ti. Which I've recently put on hold because of the 1:30am starts due to daylight savings in both countrys... Umm, I'm doing okish. I've not lost money on anything yet but at the same time I'm not making a great deal. Around 12% profit over 1.5years. Better than the banks but I'd...

Quote: Originally Posted by J.Baker Hi guys, thanks for the input! So what does "starting small entail" Buying 1000 $3-6 stock and making a call option or something? Where would I get the best info on how to trade options? I have been reading the lesson on optionsXpress, tho its on how to trade US options. Doesnt this matter?

Paper trading is great but it is very far from reality, especially with Oz options. Liquidity in real trading may be so much less than you expect. You will probably transact at prices far worse than fair value, especially when market makers are not quoting. You will probably be more gung-ho with paper trading, and more chicken with real money. You will find the real market to be vicious and unforgiving if you make a mistake eg. placing...

Quote: Originally Posted by J.Baker Hi guys, I want to do a bit of options trading. Where is the best place to start and how should I do it? ie is there a sim account I can open without having to open a money account or should I just write it on paper, good books to read? etc etc.. Thanks..

yep. waste. Will give you a false impression thats also counter productive. Like the others said, start small & take your time. The last thing you want to do is go in the red from the start & have to climb your way back. Been there, done that. not fun.

How do you work out/factor in liquidity when paper trading?

Quote: Originally Posted by wayneL Don't ever ever think you can get the price of the last sale. (a popular delusion) Don't kid yourself that you can split the bid and ask Buy the ask and sell the bid in real time... you might get a fair idea.