I wear a tin-foil hat and have been stacking physical gold as a hobby/insurance policy for a while now.
I come from an engineering background in applied mathematics. Recently, I have had some time on my hands in paying attention to the mechanisms of market movements and I want to understand how to recognise patterns in financial charts.
I have a high risk aversion and have no interest in placing any bets at this early stage of my understanding. I just want to get a grip with what tools and interfaces traders use to make assumptions and place bets.
Currently I use these tools:
My question is: How does one go about playing with Options? Where does one start? Does one need to create an account with some online brokerage that provide you with a platform for day trading? If so, could someone suggest who. Are there platforms available that can be used to experiment with real live data but at no real cost or loss?
Any suggestions would be greatly appreciated.
Are you asking about options on futures contracts or EFT's? Both function the same in principle. But, differ in investment costs. The options on the EFT's will be much cheaper the the options on futures.
Thanks for your response :)
Since I don't have much experience in technical chart analysis and want to learn more, I guess what I'm asking for is a recommendation for a user friendly platform for simulated commodity day trading that offers a good introduction on live data. A fellow stacker has suggested this site to me:
I need to spend some time working through this but any other suggestions would be appreciated.
A lot of online future brokers let you practice trade. It is good experience. Depending on the size of your bankroll, (and, that is your business, not mine), really dictates how you invest in the PM markets. The best and safest is to stack physical. Any paper invest, (paper defined as anything other then metal in your hand). Increases the level of risk. Stocks or EFT's are another avenue to explore. Look at the Miner indexes, CEF, Or Sprott. You can also trade options on these. Futures and options on futures are going to be your highest risk investments. High risk can equal high returns. But, can lead to high looses. They also require a bigger investment.
Thanks Brotha Bob, I'll take on board your recommendations...
Just trying to help. I hope you find your way.