Paper trading has its merits and demerits whether it is of value or not. In paper trading the profits are meaningless. Paper trading is an important step in the trader’s learning progression.
Paper Trading Values:
- Simulator fill prices are not real and won’t be attainable with real money
- There isn’t any financial risk in paper trading
- There is no emotion involved with paper trading
Two predominant problems of paper trading
- The trader does paper trading because they may not do with real money
- The trader views paper trading profitability
Profitability places the focus on currency instead of plan. The paper trader should not regard simple productivity as a sign of readiness to trade real money. Begin trading with real money when you are 60-70 percent proficient with your paper trades.
Paper trading is not only beneficial, but that paper trading is also necessary though the value received will be dependant upon the trader’s approach and attitude. Needless to say, paper trading as described is something that I have always strongly recommended.
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