START WITH PAPER TRADING

If you are just starting your journey in options trading, it is always prudent to start it with paper trading only. Although option trading through option strategies can be a really rewarding business, but if you do not understand it well, it can be really dangerous on your capital.

So, best way to start is trade options on paper only. Make some theoretical purchases and sales , observe how it works with the actual market movements , make the adjustments as per the required system, again follow the real markets and see the results.Once you are fully confident and comfortable with the strategy, only then go for actual trades.

This becomes all the more important because when we are trading with actual money, Greed and Fear will come into picture which will force us to take wrong decisions. But as long as we are trading on paper, our decisions will be much more rational and hence execution will be much better. Once you understand the strategy with experience in paper trade , you are ready to trade with real money in few days.

Also , its important to get your learnings in paper trade on track. You must be able to clarify your doubts, so that the actual benefit of paper trading is extracted. Lastly, do not go very long for paper trading only. Start  real trading in a step by step manner.  Ultimately, in any case, the real learning will take place through actual trades only !!




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