Home » Finance » Investing

Option Trading with Zero Risk

Jul 25, 2008
Anybody who has looked into option trading becomes fascinated with the potential profit. On the other hand, nobody wants to risk losing money to find out if it will pay off. This is how I felt when I became an option trader.

Fortunately, I took action and my fear went away. And the results I've achieved since then have been life-changing.

When I say I overcame my fear, I didn't do it by rushing into the fray of the market. And I didn't do it by stuffing my head full of trading strategies and the latest news headlines.

What I decided to do was fun, practical, and easy on my wallet. I utilized a method of option trading that eliminates all the risk. What method is this? It's called "paper trading." Let me explain how it works...

Paper trading means you trade on paper only. You don't risk any real money. But you pretend as if you were. So you identify a solid option trade, pretend that you've purchased the option, and then write down the price at which you entered your trade.

After entering your trade on paper, simply track the price to see if it is moving in your favor or not.

You can get even more value from paper trading if you give yourself an account balance similar to what you would have if you opened a real trading account. Your account provides you with imaginary money to trade options. When you buy an option, you reduce the balance. When you sell an option, you increase or decrease your balance accordingly.

In this manner, you can see how good your trading skills really are. You can see if you would have actually made money or lost money in real-world situations.

Does this perhaps sound a little too elementary? Trust me, it's not. I embraced this method until I became more comfortable risking my own money.

I paper traded not for a few weeks, but a few months before I started using any real money. This way, I got to really see how the market works and what influences the price of option contracts. I got to see where I was doing things right... and where I was doing things wrong.

Monopoly is a popular board game that mimics real estate investing. By playing it, you will learn many basic principles of buying, renting, and selling real estate.

Paper trading is similar to playing Monopoly. Paper trading is a game that teaches you how to successfully trade options.

Experience is the best teacher, which is why paper trading is so effective. Even better, you won't lose so much as a nickel -- because you're not even using real money. It truly is no-risk since you've got nothing to lose!
About the Author
Before you risk another dollar in the market, learn option trading strategies and tricks you can apply immediately to win more trades and improve your portfolio.
Rating:
Please Rate:
(Average: Not rated)
Views: 248
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources