Paper Trades: One Off, One On?

Paper Trades: One Off, One On?

Nov 11, 2005

I see the Englishman transitioned from paper trading to trading in earnest and want to pass along our best wishes for good trades. (Thanks Mike)

I read the hilarious musings and descriptive misery of Slovak trader and suggest he might do well to give paper trading a go: (jk Frank!)

TurtleTrader describes paper trading this way:

No capital is actually invested when you make paper trades, so they become
a great learning tool. Simulations like paper trading force you to make
decisions and then show you the consequences of those decisions again, without
risking your capital.

The only behavior to adjust for is the one that says, “it’s not real money”. In a positive way the effect can make you looser and undistracted from what the market and set-ups are telling you. In a negative way the effect can make you more aggressive than you would otherwise be with real capital on the line.

An individual trader can paper trade to:
* establish a track record
* develop trading discipline
* test trading strategies
* evaluate new markets
* build trader confidence
* make trading career decisions

Good luck, stay focused, maintain your discipline. It’s been said before, “the only holy grail … is you.”