Everyone has a plan until they get hit.Mike Tyson —
I started trading just like everyone else, by accident, when someone told me to buy a certain stock. But unlike most beginners in the market, I made more money in my first few trades than my yearly salary. It was pure beginners luck. After that, I went and got a trading education.
Every single teacher that I’ve met on my way to become a professional said to me the same thing: “Slawek, make sure you paper trade before you start investing real money”. They were right. You should spend a fair amount of time learning the skills of technical analysis, using strategies, finding entries, calculating stops, targets, etc. And in case you’re an options trader, also how to read the options chain and understand risk graphs.
Learning how to use your trading platform should also be done in a DEMO account. The rule of thumb when I was learning this craft was to double my paper trading account before going live. But is this the end of the learning curve?
Mike Tyson once said: “Everyone has a plan until they get hit.”
Do you know how it feels, to lose real money in trading?
Do you know how it feels when you get filled in a trade with “slippage (paying up for entry) and then get stopped out for a loss with “slippage”?
How does it feel not to get filled on a big winner? Do you know?
What would you do if instead of buying puts, you got in calls, because you didn’t know your platform well enough and instead of making $3,000 you’ve lost $2,000?
I know how I feel right now just writing about it. Those are some of my “I didn’t see it coming” moments, from +10 years of trading experience. There is a transition phase going from a paper to a live account.
You will find out that it does not take a blink of an eye to get fill in trades like options spreads.
There is no way to calculate your stop loss to the penny, and that in order to get in trades you need to sometimes pay up.
Partial fills on huge winners are the norm. No shares to borrow.
The list goes on. You will need to adjust to the new normal environment described above.
Did I see it all in trading? I’ve seen a lot, but probably not all of it yet. That is why, till this day, I learn new strategies in DEMO account and love to “leg in” my positions and I always start my trades calculating the loss first.
DEMO account is a crucial tool when it comes to learning how to trade. But trust me when I tell you that you will not learn it all in a DEMO account.
Financial freedom is a journey
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.
All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.