Do I Have to Accept some Big Losses in the Beginning?

This is a discussion on Do I Have to Accept some Big Losses in the Beginning? within the New to Trade2Win forums, part of the Reception category; Originally Posted by Signalcalc I think most have agreed that paper trading is good for a number of reasons before ...

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Old Nov 24, 2016, 11:20am   #129
 
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Originally Posted by Signalcalc View Post
I think most have agreed that paper trading is good for a number of reasons before going live. Another couple of reasons for paper trading I have personal experience of are that it will start to instil discipline, it will teach you wether a particular strategy can fit with your lifestyle for example if you have a full time job, can you get to a screen, analyse and execute every 4 hours, do you have enough time in the mornings, at coffee breaks or in the evenings when you have put in a full days work and you just want to go to bed, it's not just about a good strategy and the psychology of risk. Can you continue to trade whilst on holiday ( if you want to) is it too disruptive to family life etc, you can only find out some of these things by doing and doing on paper is the safest way to find out, especially as a beginner.

Then as NVP points out when things go pear shaped in live, excessive drawdown occurs and you begin to wonder if the strategy is failing or its mistakes in execution, time to take a breather, paper trading gives you a break and time to think, maybe even think of new ways of looking at the market whilst still keeping your hand in the market on paper.
Exactly. One can approach trading seriously by studying, developing a trading plan, practicing, and eventually trading in small amounts without fear, preferably in a feedback loop that keeps him linked with reality. Or one can approach trading frivolously, jumping in with little or no preparation, trading in a perpetual state of fear, eventually losing that "money he can afford to lose". Yes, the latter may eventually after years of effort and losses figure it all out. Some do. Most quit. But unless one has a thick streak of masochism, there's simply no reason to put oneself through the grinder. Plenty of people do. One can read their stories here and in similar forums every day. The failure rate among traders is what it is for simple and obvious reasons.

It is of course a matter of individual choice. Those who want to become professional poker players will at least seek to learn the difference between a straight and a flush. Others will arrange their cards "at random" and wing it. Some will consistently bet on the prettiest horse. Others will rely on their lucky socks. It's the way of the world.
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Old Nov 24, 2016, 4:04pm   #130
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Nice discussion is going on here. I hope the newbies will pay attention to this.
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