Your Questions About Paper Trading

Joseph asks…

which online broker has the best training or education for option trading?

which online broker has the best training or education for option trading?

I’m planning on opening an online trading account, but I would prefer to start with a brokerage that has the best education and training specifically in options. I hear Think or swim is at the top, but does any one have any opinions on Options express or trade king? Any advice is greatly appreciated.

John answers:

I’ve been using ThinkOrSwim for over 4 years. Read the Barron’s article on best brokers at the beginning of this month. TOS is great for Stocks and Options. The platform changes the way you look at trading. Paper Trading is only one small part of all that is offered.

Check out;
http://www.redoption.com/
http://www.optionplanet.com/assembled/list.html
https://www.thinkorswim.com/tos/displayPage.tos?webpage=onlineSeminar

The platform is always growing. There’s always some education (free and low fee) going on. There are two charting packages available on the platform. And…. You’ll love the “ShadowTrader”, mostly for stock trading…….. But an exceptional way to expand your skills… And it’s free… Every trading day…. All trading day (except lunch)…………………………

Linda asks…

What kind of paper are usually used in books?

I would like to know what paper do publishers use in printing paperback books like Harry Potter, Percy Jackson and pretty much every bestseller books…

Also, what font do they usually use in the body of the book?

John answers:

Well it usually depends on the publisher and the budget. If you look on the copyrights page you might be able to find it there. I looked for Harry Potter and it said: first scholastic trade paperback printing. I am unable to answer the Percy Jackson one because I currently have none if the books with me. I hope this helped.

Their are many fonts to choose from. The most modern are Times New Roman and Palatino Linotype. I hope this helps!

Paul asks…

How long should a methodology section a paper be if you just did a literature based research paper?

Meaning I did not have any quantitative date within my paper….so far my methodology is just a paragraph stating the basics of what i did to find the information i have…Please help!

John answers:

You would adjust the size of methodology according to the entire paper. I mean every conference/journal usually has a ‘fixed’ number of pages for the paper. You need to pay for extra page.
Actually, you can expand your methodology by addressing following points:
1. How did you compare the available methods with one another eg. Comparison criteria
2. How did you set the criteria of most effective method/methods
3. How did you categorize the available information
4. How did you set trade-off criteria among existing methods

and so on. Hope that helps.

David asks…

What kind of printer do I need to use to print scrapbook paper?

I want to print my own scrapbook paper in order to sell my paper design at the local scrapbook stores. What kind of printer do I need to use to print professionally? Would I need to have it done by the printer company or what?

John answers:

This can vary a lot. Ideally, you want to buy a personal inkjet printer, as lasers tend to be VERY unforgiving of what you put into them whereas on an inkjet you can fudge around with sizes and papers.

I would invest in a hand trimmer from Staples or your local scrapbook store (Should be maybe, what, $20-$30?) and trim a whole bunch of scrapbook paper to the size you want. Then, get an inkjet printer and adjust it to your specific size. Think of it as printing an envelope, you want to print 4×6 pages, you would adjust it in your printer properties to be a 4×6 size, and voila.

I’m not sure what size you want it, but an inkjet, probably in the $100-$200 range would be your best bet for getting this done. Printing scrapbook paper professionally is a can of worms you don’t really want to open, trust me on this one. I’ve worked in a Kinkos back in the day as well as working for a trade printer now, and no one will want to touch scrapbook paper for you. It’ll be better for your ego, cost, and general knowledge to just grab a personal inkjet and experiment a bit, you’ll get better results and a nice feeling of accomplishment when it turns out the way you like. 🙂

Robert asks…

What’s the best way for a beginning stock trader to start trading stocks?

Could you provide websites relevant for beginning stock traders to assist them in knowing which stocks would be best for them to begin trading and indicators for learning to recognize when to buy and sell a stock.

John answers:

I see you are interested in investing in the stock markets. Start trading stocks is as simple as opening a trading account and then picking a stock and then buy. However, that simplicity is truly the wolf beneath the sheep’s skin.

There are quite a number of things you need to learn before you can even start thinking of the stock markets …

1. You need to understand how the stock market works and what it is exactly about.

2. You need to know what are the different styles of trading in stocks and shares.

3. You need to read about why so many people lose their shirts in the stock markets so that you can avoid their mistakes and also decide if this is a risk you want to take.

For all these issues and more, you can read about them from some of the articles that I wrote at http://www.mastersoequity.com/articles.htm

After you are adequately armed with the basic concepts and ideas, you need to know how to find profitable stocks to trade or invest in. You can do that the easy way by subscribing to stock pick services (example http://www.stockpickmaster.com ) or you can learn to use charting tools and softwares to find stocks with parameters that you can pre-define. (example http://worden.mastersoequity.com/)

Remember, the slogan “Just Do It”, Just won’t do for the stock markets. If profiting in the stock markets is as simple as buying a single stock , then why are so many people still poor?

After you have all the above mentioned knowledge, you need to ask the following golden questions before you can decide whether a stock is worth buying or not :

1. Why are you of the opinion that this stock will rise?

2. Is your opinion valid in the first place?

3. When are you expecting it to rise? Can you hold on for that period of time or longer?

4. What is your expected entry price? After what price would your expected profit margin be too thin to enter upon?

5. Where is your expected stop loss point? What is your stop loss point based on? Where will you tell yourself that it is time to take a loss and get out?

6. Where is your expected profit taking point? What is your profit taking point based on?

7. Does the way you are buying the stock allow you to hold on until your expected profit taking point?

8. How much of your money should you dedicate to this one trade?

9. What is the level of primary, secondary and idiosyncratic risk you are undertaking when deciding how much of your fund to use?

10. What is your cashflow need? Does your cashflow needs allow you to hold the full lifetime of the stock?

After you are able to answer all these questions confidently, THEN you are ready to… PAPER TRADE your stock strategy. Yes, even at this point, you are NOT READY to trade for real. You should trade on PAPER for at least 6 months and become consistently successful BEFORE you take your stock strategy into real life.

Then.. You are ready to start… But there is still no guarantee of success as paper trading is very different from real trading. You will need another maybe 1 year or 2 trading very little money and be consistently successful BEFORE you are ready to increase your stakes.

So, as you can see, success in the stock markets is not easy at all the the less knowledge you have, the more risk you undertake. I lost hundreds of thousands in the stock markets before I become successful.

Take heed and good luck.

All in all, investment and trading is a lifelong education and non stop learning. No one is ever done learning and catching up with changes in the markets.

If you care to read about how I went from completely broke to retired millionaire trading stocks and options by 28 years old, you can go to http://www.mastersoequity.com/

Hope these information helps.

Http://www.optiontradingpedia.com/

http://www.mastersoequity.com/

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