What is Paper Trading?
-Trading stocks with a fake account or with fake money
-A way to practice before doing live trading
How to Train:
-Get as much education as possible
-Begin paper trading
-Do live trading on low shares in order to gain experience (if you have a stock worth $50/share, don’t trade more than 5 shares
-Example: as the stock market goes up, add 1 share (this will cost you commissions, but you will gain experience), and continue adding one share at a time as it goes up.
-Commissions can cost from $5-$40 per trade. You will be losing money. This business requires your time and money in order to gain education.
-Put these numbers into an excel spreadsheet and multiply them based on the number of shares you want to trade in the future. See if you’re making a healthy profit.
-If you’re consistently successful and you’re trading properly, then begin live trading with larger shares.
Why Live Trading With Low Shares is Essential
-The problem with paper trading is the trade executions will fill automatically, but they might not in live trading: stocks might be more scarce, trade timing might be off, etc.
-Your mindset is changed in live trading (anxiety, fear, you’re using real money, etc)
-Many people are successful with paper trading, but not with live trading initially
-If you go right from paper trading to live trading with larger shares, you’re likely to lose a lot of money
#papertrading #tradingpaper #tradestocks #stocktrading #tradingstocks #paperstocks
Posted at: https://tradersfly.com/blog/what-is-paper-trading/
? GET MY FREEBIES
? SUBMIT A VOICE QUESTION
? START HERE: FOR NEW TRADERS
? START HERE: OPTION TRADERS
? MY CHARTING TOOLS + BROKERS
? MY COMPUTER EQUIPMENT
? GET THE NEWSLETTER
? SEE OUR MEMBERSHIP PLANS
https://tradersfly.com/go/members/
? STOCK TRADING COURSES
? STOCK TRADING BOOKS:
? GET PRIVATE COACHING
? WEBSITES:
? SOCIAL MEDIA:
https://tradersfly.com/go/twitter/
https://tradersfly.com/go/facebook/
? SUBSCRIBE TO OUR YOUTUBE CHANNEL
https://tradersfly.com/go/sub/
? MY YOUTUBE CHANNELS:
TradersFly: https://backstageincome.com/go/youtube-tradersfly/
BackstageIncome: https://backstageincome.com/go/youtube-bsi/
MyLittleNestEgg: https://mylittlenestegg.com/go/youtube/
? ABOUT TRADERSFLY
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.
Stock trading can be a brutal industry, especially if you are new. Watch my free educational training videos to avoid making big mistakes and just to continue to get better.
Stock trading and investing is a long journey – it doesn’t happen overnight. If you are interested to share some insight or contribute to the community we’d love to have you subscribe and join us!