Agree with the paper trading 150% to start with.
Yes, there is no pressure, and as long as you are honest with yourself and don't cheat, you will find out at no cost to yourself if you can make money (in theory) at this. Why would you want to go to the trouble and expense of setting up an account, putting hard earned money into it and 'gambling' with it before you find out if you can do 'it'.
Would you step off the side of the pool into the deep end without first learning how to swim?
Of course, as traders know; as soon as you put down your money on your first trade the emotions come into play and the paper trading comfort goes out the window.
And using that eulogy, would you step into the lions den holding a fistful of fivers and try to trade the S&P without first finding out if you can trade the cheaper price indexes.
The first preamble into futures trading should be with the lesser cost instruments. (Unless you have pots and pots to throw away.)
More importantly though is that you know your market first.
This involves doing nothing other than than sitting in front of a live screen and just watching, and watching and watching. Until you get the 'feel' of the market.
Now, in my opinion if you can't beat the sb's. you will struggle to beat the real markets. If you can beat the sb's, you will do well in the real markets.
Some will of course disagree with this and put forward the bias/ spread argument. But this only applies to short term trades. After you start going past the one day stage, the bias and spread becomes negated somewhat. (Assuming some movement of the market.) You will never make as much spreadbetting as the real thing, and given the choice I would take something like IB direct to market over spreadbetting any day. But as ever it comes down to horses for courses.
But above all else, and before you risk any money at all. Find out if you can do it in the first place. The markets do not care who's money they take. When I enter a trade I don't care if you have £50,000 left or you are down to your last tenner. If it's up for grabs I'll take it. If I get it wrong you will only get a tiny bit of my money.
Good fortune.
Options.
Yes, there is no pressure, and as long as you are honest with yourself and don't cheat, you will find out at no cost to yourself if you can make money (in theory) at this. Why would you want to go to the trouble and expense of setting up an account, putting hard earned money into it and 'gambling' with it before you find out if you can do 'it'.
Would you step off the side of the pool into the deep end without first learning how to swim?
Of course, as traders know; as soon as you put down your money on your first trade the emotions come into play and the paper trading comfort goes out the window.
And using that eulogy, would you step into the lions den holding a fistful of fivers and try to trade the S&P without first finding out if you can trade the cheaper price indexes.
The first preamble into futures trading should be with the lesser cost instruments. (Unless you have pots and pots to throw away.)
More importantly though is that you know your market first.
This involves doing nothing other than than sitting in front of a live screen and just watching, and watching and watching. Until you get the 'feel' of the market.
Now, in my opinion if you can't beat the sb's. you will struggle to beat the real markets. If you can beat the sb's, you will do well in the real markets.
Some will of course disagree with this and put forward the bias/ spread argument. But this only applies to short term trades. After you start going past the one day stage, the bias and spread becomes negated somewhat. (Assuming some movement of the market.) You will never make as much spreadbetting as the real thing, and given the choice I would take something like IB direct to market over spreadbetting any day. But as ever it comes down to horses for courses.
But above all else, and before you risk any money at all. Find out if you can do it in the first place. The markets do not care who's money they take. When I enter a trade I don't care if you have £50,000 left or you are down to your last tenner. If it's up for grabs I'll take it. If I get it wrong you will only get a tiny bit of my money.
Good fortune.
Options.
