Paper trades are simulated trades that let aspiring investors and traders practice buying and selling without putting their own money at risk. The expression stems back to a time when ambitious traders would train on paper before putting their money at risk in real markets (before the ubiquity of online trading platforms). While learning, it is recommended to a journal. Therefore a paper trader manually logs every transaction to Toto keep track of simulated trading positions, portfolios, gains and/or losses. The majority of practice trading nowadays includes the use of a simulator that looks and feels just like a real trading platform.
This week we are going in with the Vertical option strategy on QQQ (Nasdaq ETF). The reason for choosing this option trade is that we are learning to choose a direction and how to trade that choice. QQQ has been on a crash course recently to the downside. As contrarians, we will bet the stock stops and heads up from here over the next 45 days and use a Short Put Vertical to trade that assumption. Watch this video to get the trade details. Hope you enjoy it! Kal Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability