Paper Trading VS Reality

Well, this is my first post, and most likely my last.

My Question is: Am I ready for the real deal?

I have been considering becoming a full-timer. I have been paper trading now for about 50 market sessions(w 50,000 monopoly dollars). I have been a fairly consistent winner. I use a fairly simple system relying on an oscillating indicator and support and resistance levels. Typically, I make between 1-10 trades per day with an avg hold time of about an 1.5 hrs. I trade only extremely liquid equities on the NYSE, so slippage should be minimal (I try to account for this anyways).

Academically, I have a fairly strong statistics background, and I know exactly where I stand theoretically. What I am concerned about is the psychological aspect of trading. I consider myself a fairly cold-blooded or even-tempered person, but still this aspect of trading concerns me.

In your opinion, do you think my paper trading has adequately prepared me for the real deal, or should I continue to paper trade to refine my system/gain more confidence?

Please, serious responses only.

Thanks in advance.

Well, why not start trading for real but tiny amounts you don't really care about? Each week you up the ante if you finished in the positive. After about a month you should be at an amount you DO care about, and then you can start trading full-time.

You'll know how you react to the phycology, because if the first week you finished up, then you increase trade size and the second week you finish up, but then when you increase the trade size again you can't finish the third week without a loss... then you know you have a mental barrier. I think it's natural, but you have to get past it. Here is something to keep you reading for a while!

http://www.precisefutures.com/free_doc/doc_1.html

I considered myself hard...until I started trading. Nothing 'prepares' you for the roller coaster of emotions that is trading other than actually doing it, day after day, until it becomes routine. and even then you have the odd day/s when it can freak you out...
There is reams of stuff on 'ere in relation to emotions and psyche, just dig...

Indeed, I seem to get more flustered being up or down several hundered $ than I did being personally liable for £300k of unsecured debt when I ran a software company several years ago.

No point in paddling in the demo pool, need to jump in the main pool, feel how cold it is and practise your swimming.

robster970 said:

Indeed, I seem to get more flustered being up or down several hundered $ than I did being personally liable for £300k of unsecured debt when I ran a software company several years ago.

No point in paddling in the demo pool, need to jump in the main pool, feel how cold it is and practise your swimming.

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Here's a thing; when I consider the money that has been through my fingers over the past 2 decades and recall that earlier on in my trading career I used to fret over losing fifty quid the contrast is amusing... Then it dawned on me that due to letting so much slip through my hands (and not ensuring enough of it stuck) is probably the reason I have strived to become ultra efficient at trading...this really is a fookin great chance to build a sound future for you and yours...

Demo trading is like having sex whilst wearing 10 condoms.

virtuos0 said:

Demo trading is like having sex whilst wearing 10 condoms.

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never tried that, you got a really small **** then V2O?

Condoms can be made to stretch over coke bottles, that's all I'll say

The 2L ones

virtuos0 said:

Condoms can be made to stretch over coke bottles, that's all I'll say

Click to expand...

Sounds like you actually tried that - hope it worked out !!

robster970 said:

Indeed, I seem to get more flustered being up or down several hundered $ than I did being personally liable for £300k of unsecured debt when I ran a software company several years ago.

No point in paddling in the demo pool, need to jump in the main pool, feel how cold it is and practise your swimming.

Click to expand...

Time to step up with some real money - changes the game completely - If your system works in Demo land then stay with the system - Start at the minimum size - know in advance at what price you will cut your losses and how much it will cost you - do not deviate from the plan you devised in demosville - if you lose a pre determined amount of money then just go back to demotown again.

Paper trading is good for practicing new systems, techniques etc but i would not reflect it on a real account. It will give you some guidance but the emotions are totally different and cause you to react differently.

If you can remove your emotions and do what you are doing now then your on to a winner. Good luck

Claudia123 said:

Sounds like you actually tried that - hope it worked out !!

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Pity his poor wife though eh? Fizzed up 2 litre bottle of Coke with ten condoms on it...:-0...Don't worry V2O, what's said on 'ere stays private...er...oh...

Jump in and test the water

Black Swan said:

Pity his poor wife though eh? Fizzed up 2 litre bottle of Coke with ten condoms on it...:-0...Don't worry V2O, what's said on 'ere stays private...er...oh...

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He off to supermarket for his 'two for one'