How easy is paper trading, really?

This is a discussion on How easy is paper trading, really? within the Psychology, Risk & Money Management forums, part of the Methods category; Originally Posted by LP2 It was around twenty grand in total (10k real & 10k paper) The question is: What ...

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Old Apr 11, 2018, 9:14pm   #16
 
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It was around twenty grand in total (10k real & 10k paper)
The question is: What is it now?
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Old Apr 11, 2018, 9:26pm   #17
 
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It was around twenty grand in total (10k real & 10k paper). I've been trying out different strategies for about a year with small accounts to see which one suits my personality the most & to get a feel of different markets @ different time frames.
I guess all depends on the person and the amount of money... when I was starting long time ago, after reading some books (no YouTube back then ;-) and thought I had a strategy and started trading for sure I got excited when I was +$1000 and felt like $hit when I was -$1000, especially few days in a row (here goes the family vacation :-)

But overtime you've seen it all and those become just numbers, some days, I don't even bother to check if I am up or down for the day and sometimes I even forget I have open trades until I get sms about a filling... I do check once a week all trades (if any) and keep a meticulous record: execution, size, buy, stop, sell, etc...

EDIT to clarify: In my case I am fully systematic/automated, so this helps me a lot with the psychological mambo jumbo...
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Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
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Old Apr 11, 2018, 9:38pm   #18
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The question is: What is it now?
I have around 12k in my real trading account.
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Old Apr 11, 2018, 11:28pm   #19
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I switched between trading with real money & using paper every month for 8 months to see if "emotion" had any impact on my results. It turns out I actually made more money when I used real money than when I was trading with a paper account. Of course this could have just been a total fluke, but I bet if you get more beginners to try this method they'll get similar results.
Your primary assertion is that emotions do not impact a trader's performance. Your opinion is totally inconsistent with the body of evidence in the trader universe and would be an anomaly. Given that you are drawing such a conclusion based on 4 months of actual live trading (since you were alternating) I would explain it away as simply lack of sufficient engagement experience at your end. I am not discounting your personal testimony but when you are going against a predominant position, you would need much more substantial evidence than simply some limited engagement with the market on a live basis.

The other point I want to bring to the table is that random distribution of events (some may call luck) plays a much more significant role in short term results than is generally acknowledge. Below is the result of research study to demonstrate how randomness impacts the result of even a positive expectation system based on 100 traders trading 250 trades each.

Click the image to open in full size.
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Old Apr 12, 2018, 10:43pm   #20
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Your primary assertion is that emotions do not impact a trader's performance. Your opinion is totally inconsistent with the body of evidence in the trader universe and would be an anomaly. Given that you are drawing such a conclusion based on 4 months of actual live trading (since you were alternating) I would explain it away as simply lack of sufficient engagement experience at your end. I am not discounting your personal testimony but when you are going against a predominant position, you would need much more substantial evidence than simply some limited engagement with the market on a live basis.

The other point I want to bring to the table is that random distribution of events (some may call luck) plays a much more significant role in short term results than is generally acknowledge. Below is the result of research study to demonstrate how randomness impacts the result of even a positive expectation system based on 100 traders trading 250 trades each.

Click the image to open in full size.
I'll carry on trading to see if I get the same results. I already had a strong gut feeling that the results would turn out the way they would before I even started.

I'm thinking of pushing myself even further by trying to trade in a way that would cause as much psychological pain as possible...got any recommendations? (it must be a form of day-trading with strict risk management & a simple set-up)

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Old Apr 12, 2018, 11:46pm   #21
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I'll carry on trading to see if I get the same results. I already had a strong gut feeling that the results would turn out the way they would before I even started.
Just carry on doing what works for you. If it was luck than by definition it will run out. If you do have an edge than the results will testify to it.

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I'm thinking of pushing myself even further by trying to trade in a way that would cause as much psychological pain as possible...got any recommendations? (it must be a form of day-trading with strict risk management & a simple set-up)
When you engage in this business long enough you will eventually realise trading being a performance activity is simply about "you" the trader and all the problems associated with your own personality. If you wish to increase the intensity then it is a function of frequency and time frame. It is intuitively obvious that the intensity of the engagement is different between trading a 5 min bar versus a daily bar.
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Old Apr 13, 2018, 12:19am   #22
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When you engage in this business long enough you will eventually realise trading being a performance activity is simply about "you" the trader and all the problems associated with your own personality. If you wish to increase the intensity then it is a function of frequency and time frame. It is intuitively obvious that the intensity of the engagement is different between trading a 5 min bar versus a daily bar.
I would respectfully disagree. The market doesn't care about your personality & it won't adjust to your style of trading - you have to adjust to it. Just a bit curious... are you a profitable trader yourself? If so, how long have you been trading for?
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Old Apr 13, 2018, 1:24am   #23
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I would respectfully disagree. The market doesn't care about your personality & it won't adjust to your style of trading - you have to adjust to it.
You are confused. Point out to me one statement that I made that even remotely suggest that the market has to adjust to the trader.

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Just a bit curious... are you a profitable trader yourself? If so, how long have you been trading for?
18 years - full time.
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