Stock Market

Why You Should Start Options Trading With A Small Cash Amount

If it is your first time trading options. I recommended starting off around $500-$1000 into your account to trade options with. This will help not get the burn and regret of losing your trades with options if the trade goes wrong. When starting off with a small cash amount, it will build the discipline to stay within your means of options trading to avoid taking on too many contracts to reduce risk. As you start to profit you can take some cash out to keep for yourself and keep trading the rest with to potentially increase earnings. Trading options with its various trading strategies aren’t always easy, especially with the volatility of the current stock market. It is best to take less risky trades and continue to research and have an outlook on the overall stock market to become a better options trader.

Learn from your self-experience, youtube, network with other traders on social media and personal events. It is how I learned to trade options and although I have made thousands and lost thousands, it is a never-ending learning experience that will continue to build my knowledge with options trading.

Here is a video from “US VS HERD” on Youtube.  It is my favorite channel to learn and watch about options trading.  Watch the video below on why trading with a small account is useful.

2 thoughts on “Why You Should Start Options Trading With A Small Cash Amount

  1. Definitely have to know what you are doing. I started with $500, lost a little of $300. Decided I didn’t really have the time (with school) and the frequency, so I figured I would save my money. Try it out another time. Also, why did you move to another broker? Was there a specific reason?

    1. It has a learning lesson for me. I do slightly find it difficult to trade during the mornings as I work in the earning morning shift from 6am-2:30pm and can’t trade for long on the computer. I am getting back after I took a break to reanalyze and come with a new less aggressive options trading. I switched to try out a new broker and not deal with delay options trading I had with Robinhood at times. I use tastyworks and it has worked effectively so far.

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