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; I know this may be hard for some of you to believe but I can execute any plan I set ...

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Old Apr 10, 2018, 3:21pm   #1
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How easy is paper trading, really?

I know this may be hard for some of you to believe but I can execute any plan I set (as long as it's mechanical & doesn't involve too much discretion). I don't think emotions play that big of a role to the point where someone who makes 100%+ P/A on a paper account can go to averaging 5% P/A (if they're lucky) when trading with real money.

If it's true that you can make money trading common chart patterns (breakouts, complex pullbacks, etc...) & the only thing stopping the average punter from making 50%+ per year is their inability to follow their plan properly then surely people would be able to generate 300%+ returns on paper accounts where there is ZERO emotion involved?

There's only 2 conclusions I can draw from this: either you can't make money in the stock market using T.A. patterns (the ones which do are outliers) or the people who claim that paper trading is easy are just lying to fit in & not feel like sore losers (also highly unlikely... or is it?).
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Old Apr 10, 2018, 4:23pm   #2
 
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once REAL $ is on the line, it's hard. don't care who you are..or how much on the line

everyone want the win.

$100 dolla accout or a million dolla.
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Old Apr 10, 2018, 4:29pm   #3
 
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and, everyone is thinking about scaling

well, how much could I make if I had a 5 million dolla account

i know its always on my mind

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Old Apr 10, 2018, 4:45pm   #4
 
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i'm always doing that calculation

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Old Apr 10, 2018, 4:46pm   #5
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once REAL $ is on the line, it's hard. don't care who you are..or how much on the line

everyone want the win.

$100 dolla accout or a million dolla.
It's just as easy trading with real money as it is with paper, the reason people don't make money is because the patterns don't work not because they're not following their plan properly.

If you can make 100%+ P/A paper trading you should be able to easily at least make a quarter of that with real money (25%+ P/A).

If you're losing money when trading live yet you can make 50%+ with a paper account then there's only 2 possible scenarios: you're lying about your paper profits or you're doing everything right & the reason you're not making money live is because the patterns don't work.

Last edited by LP2; Apr 10, 2018 at 5:07pm.
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Old Apr 10, 2018, 5:40pm   #7
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if you aren't in the inside, your on the outside




"i got 20 other brokers analyzing charts, don't need another.."
How has this got to do with anything I said?
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Old Apr 10, 2018, 5:42pm   #8
 
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How has this got to do with anything I said?

don't know but its damn good ain't it
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Old Apr 10, 2018, 7:30pm   #9
 
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I know this may be hard for some of you to believe but I can execute any plan I set (as long as it's mechanical & doesn't involve too much discretion). I don't think emotions play that big of a role to the point where someone who makes 100%+ P/A on a paper account can go to averaging 5% P/A (if they're lucky) when trading with real money.

If it's true that you can make money trading common chart patterns (breakouts, complex pullbacks, etc...) & the only thing stopping the average punter from making 50%+ per year is their inability to follow their plan properly then surely people would be able to generate 300%+ returns on paper accounts where there is ZERO emotion involved?

There's only 2 conclusions I can draw from this: either you can't make money in the stock market using T.A. patterns (the ones which do are outliers) or the people who claim that paper trading is easy are just lying to fit in & not feel like sore losers (also highly unlikely... or is it?).
It's not about easy/hard, it is about accuracy... Paper trading is simply not accurate... fills would be different... Chart patterns do not work for me, so I wont comment on that part, but 300% is impossible in the long run in real life...
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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 10, 2018, 8:08pm   #10
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It's not about easy/hard, it is about accuracy... Paper trading is simply not accurate... fills would be different... Chart patterns do not work for me, so I wont comment on that part, but 300% is impossible in the long run in real life...
I'm exaggerating about the 300% returns lol. But even if you account for inaccurate fills, my point still stands.
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Old Apr 10, 2018, 11:24pm   #11
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I don't think emotions play that big of a role...
Well you are mistaken then
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Old Apr 11, 2018, 12:17am   #12
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It's just as easy trading with real money as it is with paper, the reason people don't make money is because the patterns don't work not because they're not following their plan properly.

If you can make 100%+ P/A paper trading you should be able to easily at least make a quarter of that with real money (25%+ P/A).

If you're losing money when trading live yet you can make 50%+ with a paper account then there's only 2 possible scenarios: you're lying about your paper profits or you're doing everything right & the reason you're not making money live is because the patterns don't work.
Have you ever traded, I mean with real money? How do you know your conditional statements are even true to begin with? They are only assertions grounded in your own mind. If you want to be taken seriously I suggest you defend your binary outcome assertion between live trading and pattern based trading.
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Old Apr 11, 2018, 3:03pm   #13
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Have you ever traded, I mean with real money? How do you know your conditional statements are even true to begin with? They are only assertions grounded in your own mind. If you want to be taken seriously I suggest you defend your binary outcome assertion between live trading and pattern based trading.
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.
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Old Apr 11, 2018, 6:54pm   #14
 
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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.
How long you have been trading and what kind of money were are talking about here, few hundred, few thousands, tens of thousands or more?
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Count de Money number 1 trading rule: EDUCATE YOURSELF!

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, 9:07pm   #15
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How long you have been trading and what kind of money were are talking about here, few hundred, few thousands, tens of thousands or more?
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.
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