Article Paper Trading and the Transition to Real Money Trading

T2W Bot

Staff member
1,465 62
Paper trading is widely discussed regarding its merits, and whether it is of value to a trader as they try to make the transition to real money trader. One viewpoint is that since paper trading is not real, the profits are meaningless, and are no indication of real money profitability. An opposite viewpoint would state that paper trading is an important step in the trader?s learning progression, and regardless of whether it is real, if the trader cannot ?properly? paper trade, then they will not be able to real money trade.
I began trading in early 1995, with the intentions of becoming an options trader; my first trading education was through an oex options teaching service. Besides options training, the service included ?tape? reading, trade management AND sp500 index futures trading ? also included in the service was the prevalent attitude that paper trading was for ?sissies?.
So I was a new trader, trying to learn and understand completely new concepts and ideas – what was...
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Cavalry Trader

Junior member
28 0
Good article

I have always found the problem with paper trading is the psychological - "why bother when I could be trading for £ and making money" - although in the real world it is often the other way around and a fantastic way to learn good set-ups, and not lose money!

Although taking a break from trading at the moment, I will certainly break in with paper trading when I am ready to return



Senior member
2,331 223
Godd article.

Paper/simulator trading allows one to develop and refine a method. If your method isn't profitable, hard cash won't change it.



Well-known member
452 127
Good article

I have always found the problem with paper trading is the psychological - "why bother when I could be trading for £ and making money"
I've always been of the view that if someone lacks the discipline to treat papermoney like real money, they probably lack the discipline to treat real money like real money!

I reckon it works differently for different people - I found myself agreeing with the part about ego - I'm as protective over my papermoney equity curve as I am over my real money equity curve.


Veteren member
3,979 1,036
Nice article. Liked the bit posting live trades to increase sweet production!:). Think its horses for courses as always. To me trading paper has a limted function for noobs ie getting to grips with platform and whats generally involved, methods etc. Could be in for a rude awakening trading with real dosh tho, nothing like seeing hard earned heading south to throw a spanner in the mental works. Personally i think its best for noobs who have some idea trade live but with peanuts (pennies), if all goes well then increase size slooowly, that way your introduced gradually to the mind job.

I know some more experienced folks trade new ideas / methods to paper........... Horses for courses.:)


Established member
535 140
I'm all for paper/simulated trading.

I've been doing it consistently for about 4 months now, refining my strategy and taking it as seriously as I possibly can. It has been of invaluable help to me.

Simulator trading through the volatility of January was a real eye opener and let me just say I am very glad I did not go live at the start of the year as I had planned to! hahaha

I was very emotionally attached to my virtual profits and it was very deflating to see them going down. Having that experience, whilst not the same things a real money, was certainly valuable to me.



2 0
Great article. I am paper trading while I learn about technical analysis. So far I have found it very useful experimenting with different systems and time frames. While not losing any money, which I would have if I had been doing it for real.


1 0
Great article, it endevours to help the reader or would be trader set realistic exspectaions " you have to learn walk before you can run".


Experienced member
1,477 27
my veiw on paper trading

my veiw on paper trading,

it's of little value, unless you've been punch in the face before.

Floyd Maywearther's biggest decision in boxing, was more than likely main went he got his first punch in the face. This is a stage when most 'newbie' boxers decide 'this is for me' 'this is not for me'

All of Floyd's fights are now won or lost in the the gym, 'far alway from the bright lights and ring girls'

paper trading can be very useful, would floyd take on a fight without training for it? (he probably would actual, bit of a cocky bugger) well you know what i mean:)arry


YouTube - Philthy Rich Training


2 0
Great artical wish I'd seen it earlier. Went from a good simulator trader to a bad live trader with dented pockets. not giving up though now relearning @£1 a pip.


1 0
Yeah I Like this Article, You need to learn to crawl then walk and then run.
Paper trade to learn, and be very specific in the what, when and how of your trading methodology. Take it as seriously as you can and imagine it's real money your making/losing and feel the emotions if you can. Then I recomend you start trading your strategy with as small amount of money as possible this is where you can work out teething problems, and if you cop it sweet which you ineviably will at some stage, it doesnt take you 2 years to recover funds/confidence before having another crack. So put you greed and ego on the backburner for the first month or two of paper trading and managing your "micro finance" account with patience, like you are tending a seed into a seedling. As you gain experience and see gains in your account you can add more funds later, remember you are trading for life. Not to make a fast buck.

Eddie Z

9 1
Paper Trading

"Clearly, I am on the ‘side’ that believes that paper trading is not only beneficial, but that paper trading is also necessary – however 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."

I could not agree more with the above statement. I think it is the trader's discipline and attitude what will make paper trading beneficial. The level of commitment will be reflected when the trader treats those trades as if they were made with real money.
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