[Jack D]

Total newbie question: What exactly is paper trading and how does it work for day traders?

Reply

Topic

[Kalfo]

It’s a place where you go to make winning day trades before placing the same trades in a real-world environment and then lose!

Reply

[Joan]

😂😂😂

Reply

[Jack D]

I don’t get it. Why do your trades work in paper mode but then not in real world trading?

Reply

[Kalfo]

You’re not contending with price slippage when you paper trade. Fees can be more favorable too. And the big one – you don’t the emotional burden in paper trading mode.

Reply

[Jack D]

What’s the point if it’s not the same as real trading then?

Reply

[Lix]

Not contending with price slippage when paper trading? I’m using Webull for papering. There are times when my paper trade goes through in about 2-3 seconds but usually it takes somewhere around 5-10 seconds to finally get in. Sometimes I can’t even get in because it takes so long that the price is already in Alaska.

And emotional burden? Hmmm. I guess people are different. I tend to sweat, my heart is beating in my throat and if I don’t profit, or just end up making under 50 bucks a day I get really depressed and have to lay down. How’s this not “emotional burden”? I’m treating it as if my life depended on it because that’s what it’s going to be once (if ever) I will manage to open a real account. I get most people don’t take it seriously. I am not “most” people.

Reply

[Steve]

Online paper trading is practice mode for the stock market. You can buy and sell using pretend money, but everything else like the prices, charts, and timing is real.

I spent hunreds of hours paper day trading before doing the real thing. It’s great for learning the ropes and the best place to start for beginners in my view.

Reply

[Jack D]

Ahhh, that makes sense now, thank you!

Reply

[James Barra]

Paper trading refers to the practice of trading with virtual money. It’s essentially a risk-free way to practice strategies or get familiar with trading software without using real money.

You can try paper trading in a demo day trading account, which are offered by most reputable brokers.

Reply

[Jack D]

I didn’t realise to start with it’s basically a demo account, thank you. Ive ipened an account with Pepperstone from that list to practice ‘paper trading’

Reply

[Author]

Replies