Ease is the word. Allocate about five percent of your portfolio to it in your first year. You will have to make more from your other trading to fund the money you lose for about the first three years. You can try a paper portfolio, but it doesn't really replicate the kinds of dilemma you get with time decay associated with options and warrants.
Avoid CFDs in my opionion, too expensive for small traders. Warants are good because the trades can be done for $30 a throw, which means you can hold small positions and close them without stressing about the loss on fees.
Start with in the money, lower exerise priced, longer dated instruments and as your ability to get the timing right on stock moves improves you can get into shorter dated instruments with more leverage.
If you're trading derivatives you MUST use TA, you cannot rely on fundamental analysis in any way.
If you start making profits from this process, hold the profits in cash and prepare for some general unforseen market event that will wipe out your portfolio, and you won't feel bad when it occurs because you will se it as a bargain hunting opportunity.
Remember, in the first year you will lose the whole amount you put in derivatives, even if you are winning half way through the year.
RMG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
