Its is very important for traders to start researching a strategy by paper trading it. But there are some points that should be kept in mind before they start paper trading.
In this article I will discuss what are these points that they should keep in mind before they start paper trading.
What Is Paper Trading?
It is not a real trading. Trades are not taken in a trading account but the trades are written in a piece of paper or an .XLSX file.
In paper trading no real money is involved. So there is no risk involved. However still there is a risk – when paper trading there is no emotion involved plus usually when paper trading traders do not look at liquidity of options.
In this article I will discuss the best ways to paper trade stock strategies.
Try Paper Trade in as Many Strategies as Possible to Save Time
You may read many strategies and find some interesting. Note down the one that you may find interesting and start paper trading. After a few days if you find another good strategy do not waste time paper trading it. Some people have this habit of waiting for one paper trade to finish then start new paper trade a strategy. If you do this you will waste time. Since no money is involved you can paper trade 10 strategies at a time. This will save enormous amount of time and you can get a good strategy soon.
Paper Trade in At Least 10 Lots
Since no emotions are involved it is recommended that you trade with at least 10 lots. When your paper trade will show more profit and loss some emotion will be involved. That said do not forget to write the margin block as well. You should have an idea of how much money will be required if you go on to trade with real money.
Learn TO Manage Risk
If your trade goes against you feel the emotion to save money and try to manage risk. Do not leave the trade as it is just because it is a paper trade. Practicing risk management will help you to manage risk when doing real trading.
Do Not Have Unrealistic Emotions
Trying to be emotional while paper trading is fine. But do not get over emotional. The emotions of trading real money are completely different from paper trading so keep this in mind. If you get success do not be overjoyed and if you lose money in a trade do not write it off as a paper trade. After all you took a trade and made a loss so be realistic and study your mistakes in the trade.
Get Your Order filled at LTP
Do not write the best possible rate when paper trading. Write the LTP – Last Traded Price. LTP is the price at which the last order took place. This is the real price you will get when trading.
Respect Your Trading Plans
Once you have written down a trading plan do not change it in between once you have started the trade. Respect your stop-loss, profit taking plan and risk management plan else you may end up making nothing out of paper trading. All your research will go down the drain.
New novice traders must do research or paper trading any strategy before taking the plunge. But they get too greedy and start real trading without doing proper research and lose money heavily.
However, it should not be done for too long else you may end up only paper trading for years. Once you get a good strategy start with lowest margin block to get a feel of the strategy in real trading.
I did one year paper trading. From mid 2010 to 2011 I only did paper trading to develop some strategies that are very conservative in nature and very capital safe strategies for the long term.
Yes using my course strategies you will not become rich overnight but it will help you generate good monthly income to live a good life a few years from now.
You have to start today else you are just wasting time and money doing speculative trading.
You can pay here for the course.
You Can Read More On My Site
Hi, I am Dilip Shaw, owner of this website. I am a trader like you. I have been trading since 2007, but lost a lot of money till 2010. I then stopped trading and studied options like college exams. Started trading again from 2011 and never looked back since. I did a lot of research, read books and did countless paper-trading before being profitable. You can read about me here.
My conservative trading course since 2014 is helping many retail traders just like you who have a job or business make consistent profits like this:
What Traders Say About This Course
Testimonials Year 2015
Testimonials Year 2015 Page 2
Testimonials Year 2015 & 2016
Testimonials Year 2016
Testimonials Year 2017
Testimonials Year 2018
Testimonials Year 2019
Testimonials Year 2020 to 2023
What People Say Just After Reading My Course
Emotional Testimonial by a Young Woman Trader and Her Mother
One Of My Client Is Making Rs.25k Per Week
Difference Between Other Courses And Mine
What Others Charge for Courses
You can do this course from your home. Some traders make amazing profits like Rs. 16.26 lakhs profit in 5 days though results may differ for all.
This course helps you learn to trade conservative option strategies for monthly income. Once you finish the course you can start trading immediately. You can start trading from any day. No need to wait for expiry. You will make profits consistently.
This course is good if you have a regular job or business. You DO NOT NEED to monitor your trades every second.
What You Get?
Before reading please understand that for all 5 strategies, strike selection will be taught. Strike selection while trading Options is the most essential part to succeed.
You get two conservative non-directional strategies on options, one conservative stock option strategy and two conservative directional strategies on Future & Option combination.
Non directional trades are profitable 80% of the times and make 3-5% per trade (Results may vary).
Directional strategy makes money fast. It does not matter which side the stock moves. In fact you make more when you are wrong in the Future trade. 🙂 Some amazing profits possible here.
The stock option trade makes 30,000 in one trade and if SL is hit there is a way to recover losses plus make 30k in that trade.
Technical knowledge is NOT required. No need to monitor trades every second.
In the course you will learn how to select the strike prices. You learn when to trade, which strikes to sell which to buy, how much profit target you should be looking for, the best place to take stop loss and what to do after taking stop loss – means how to get that money back. The success rate is more than 80%.
Since trades are properly hedged there is no stress in trading my strategies.
I am very confident that you will make money trading my strategies. To help you succeed I offer few months support for FREE.
11 Reasons Why You Should Do The Course:
1. TA Knowledge NOT required
2. NO Software Required
3. Regular Monitoring NOT Required
4. Continue with Your Job
5. Do Course From Your Home
6. 100% Hedged
7. Stress-Free Trading
8. Not too much money needed to trade
9. Scaling Possible
10. One Time Fee
11. FREE Support For Months
To know more Call/SMS/WhatsApp me on 9051143004 or email me now. I know English and Hindi.
Read the details of the course here.
If you want to enroll for the course you can do so here.
P.S: So many years of trading has thought me one thing - it is always better to make small profits month after month, rather than lose money month after month trying to make too much money. It never happens. But small money accumulated month after month can become very big in only a few years.
WhatsApp or Call me: 9051143004
If you have any question you can contact me.
You can read about me here and my trading mistakes here.
Dilip Shaw, Founder
Copyright Infringement: Any act of copying, reproducing or distributing any content in the site or newsletters, whether wholly or in part, for any purpose without my permission is strictly prohibited and shall be deemed to be copyright infringement.
INCOME DISCLAIMER: Any references in this site of income made by the traders are given to me by them either through Email or WhatsApp as a Thank You message. However every trade depends on the trader and his level of risk taking capability, knowledge and experience. Moreover stock market investments and trading are subject to market risks. Therefore there is no guarantee that everyone will achieve the same or similar results. My aim is to make you a better & disciplined trader with the stock trading and investing education and strategies you get from this website.
DISCLAIMER: I am NOT an Investment Adviser (IA). I am an Authorized Person (AP) of a Stock Broker. In other words I am a sub-broker. I DO NOT give tips or advisory services by SMS, Email, or WhatsApp or any other forms of social media. I strictly adhere to laws of my country. I only offer education for free on finance, risk management & investments in stock markets through the articles in this website. You must consult an authorized Investment Adviser (IA) or do thorough research before investing in any stock or derivative using any strategy given in this website. I am not responsible for any investment decision you take after reading any article in this website. Click here to read the disclaimer in full.