The Complete Guide to Day Trading By watching your trades on a paper trading account, you’ll learn a lot about yourself and how to deal with emotions.
Can you "pull the trigger" when your entry signal appears?
How do you feel when you see the trade moving against you? Do you feel the urge to move your stop loss?
How do you feel when the trade makes a profit? Do you want to get out? Or do you want to stay in a little bit longer?
Do you have the discipline to trade your system according to your rules?
Trading a system on a paper trading account will also help you:
Watch yourself and your feelings. Deal with your feelings. Develop the discipline you need to become a successful trader.
And, of course, it’ll help you test your trading system under "realistic" market conditions. By utilizing a paper trading account to test your strategy BEFORE you begin live trading, you will gain confidence in your strategy and your decisions as a trader. And confidence is your most important characteristic. Trade your strategy for at least 40 trades on a paper trading account be fore you even think about putting real money on the line. Stick to the successful things you know, follow your plan, and control your emotions. All the best in your trading!
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