Hello Tackle Family!

I am back to take the reins on this week’s Women in Trading blog but first I would like to give my girl Jessica Marinho a HUGE shout out for her amazing blog on how to utilize the goal setting trading planner that she created just for us Tackle Traders! In case you missed it, here is the link to download the planner and video with instructions. https://tackletrading.com/women-trading-2018-tackle-goals/

Now the trading planner goes hand in hand with the topic for this week and that is setting up a virtual trading account. Whenever someone asks what I do and I tell them that I am a trader the follow-up question I get is “isn’t that risky”? Yes of course it is, but which business isn’t?  There is risk involved in many things we do and trading is not exempt from that list at all, however one could argue that starting a trading business has less risk than most other businesses out there for several reasons. Two come to mind:

1 . the first being you can practice trading without ever investing a penny of your money into the market

2. second, you can copy what other professional traders are doing and not be in competition with them.

Think about that for a moment, what other businesses out there allow to you practice until you are comfortable enough to put real money into the business plus, you can trade strategies and systems that are taught by proven traders and by you doing what they are doing does not hurt their trades. It’s incredible!! People fear the markets because they are afraid of losing money and because they think it’s too hard, but if they were aware that they could practice trading they would be willing to at least try.

So what is virtual trading anyway and how does one go about setting up a virtual trading account?

Paper trading sometimes also called “virtual trading” is a simulated trading process in which would-be investors can ‘practice’ investing without committing real money. Most if not all brokerage companies offer a virtual account to clients when they open an account. Depending on the broker, you don’t have to fund your “live account” in order to have access to the paper trading account. Some brokers have delayed time on the paper money however, you ask the broker to give you real-time quotes on your paper trade account. If you don’t know whether your broker offers paper trade accounts a quick phone call to them should answer that question. I also did a google search on which brokers do or do not offer paper trade accounts.

https://www.brokerage-review.com/discount-broker/brokers-with-paper-trading-accounts.aspx

Once you have decided on a broker, you will have access to the paper trade account. Your virtual account should be set up as though you are live trading so set your charts and build your watch list of stocks. When I first started paper trading I was randomly trading without mirroring what my live account was going to be like. I was mainly focused on placing orders and understanding what it was that I was doing. I just wanted to click buttons and have on as many trades as possible. Looking back now, I think you should paper trade with the same amount you intend to start trading with when you fund your live account. Meaning if your paper trade account has $100,000 to practice with, yet you plan to start live trading with $25,000 then you should paper trade with $25,000. This way you can measure your wins and losses more realistically. The more you can simulate your paper trade account to how you will trade when you go live the better. If you have on a lot of trades and you find it difficult managing them then you will have the same issue when you go live and you do not want to have on too many trades and miss one during earnings season. These small mistakes can easily draw down your account turn your trading into a nightmare. Now if you are like me, you will get curious and will want to see what happens if…… so for my risk takers that just cannot resist, go ahead let your options expire in the money just to see what happens. After all, it is a paper money account and you can hit the reset button but know that in your paper money buying power is readily available as if Oprah is giving it away however a live account with small capital will have limited buying power and you will need to have cash set aside to close trades. Bottom line is, more you treat it like a real account the better. Journal and keep score. Learn the behavior of the stocks you have on your watch list, implement new strategies when you learn them and know how to manage your trades and when you are finally ready to go live, you will have more confidence!

.

You can follow daily trade adjustments and updates on Twitter, Facebook, or text “follow @tackletrading” to 40404 to get text alerts!

 If you are not a Pro Member and following the Stock & Option Picks, then check it out! There is a Promo code for Free 15 day trial:  THETA

  Emily Muiruri, an Entrepreneur, Real Estate Agent and Business owner. Born and raised in Nairobi, Kenya before her family moved and settled in Maryland. She began her trading journey in January 2015 after 17 years of Property Management in the Self-Storage Industry.  Emily uses different strategies to trades stocks, options and forex. Although still a student learning and enhancing her trading skills, she has strong desire to teach women to take control of their finances and become traders. Writing blogs is one of the ways she’s is looking to spread the word and get more women involved. Emily knows that with the right education and trading system women can be successful traders

– – – – – –

Legal Disclaimer

Tackle Trading LLC is providing this site and any related materials (including newsletters, blog post, videos, social media and other communications) 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 may not represent specific trades or transactions that we have conducted. In fact, we may use examples that are different or the opposite of transactions we have conducted or positions we hold. This site and any information or training therein is also not intended as a solicitation for any future relationship, business or otherwise between the members or participants and the moderators. No express or implied warranties are being made with respect to these services and products.

All investing and trading in the securities market involves risk. Any decisions to place trades in the financial markets, including trading in stock or options or other financial instruments, is a personal decision that should only be made after thorough research, including a personal risk and financial assessment, and the engagement of professional assistance to the extend you believe necessary.

Tags:

Finance, Stocks, Market, Stock Market, Options, Trading, Tackle Trading, Stock Market Today, Stock Market News, Market Recap, Market Review, Forex, Commodities, S&P 500, Dow Jones, DJIA, Trading Videos, Active Trading, Active Traders, Day Trading