What is Paper Trading?

Finance

  • Author David Davidi
  • Published September 5, 2010
  • Word count 412

Paper trading (sometimes also called "virtual stock trading") is a simulated trading process, that new traders can ‘practice’ investing without committing real money. There are a lot of reasons why paper trading is considered as one of the most important part of stock market trading.

A few reasons to practice with paper trading:

Paper trading allows you to develop your our own system and will help you test your strategies without risking your own money. You would want your own system to work but this is not always the case thus paper trading gives you the chance to commit mistakes and learn from it.

New day traders or swing traders have the tendency to lose money while learning how the market works. With paper trading, you will have access how the market works and gain experience to become a successful trader.

It allows you to practice trading but since no real money is involved, your capital will be preserved and will only be used once you have already discovered a system that will work you in the trading business.

After a few loosing day, getting back into stock market is scary, so it is better that you go back to paper trading for several days and after several days practice with paper trading you will gain confidence to start putting in real money.

People have the tendency to pull out of the market once they start losing money but with paper trading, it allows you to be able to practice first without risking your own money, build a system that works for you which will give you more chances of succeeding in the trading business.

Star Alliance will give you access to free demo account. Experience the power of the demo account that Star Alliance offers through Dimension, with a Free, no obligation trial of our super fast trading platform, Blackwood Pro.

With a 3 days FREE trial, you’ll do more than test your new ideas.

Simulated Trading

  • $200,000 Buying power simulated account

  • Access to real time quotes

  • Free real time charting

  • Access to all technical indicators

To get a free demo account please click here.

Star Alliance Capital Partners would like you to invite you to our free day trading webinar. At this free webinar you will learn the basics of trading and we will show you how a professional trader can make money from stock market movements…. For more information and attend to our Free On line Webinar please click here.

Star Alliance provides traders with use of the Blackwood Pro direct market access trading platform, offering super fast order entry and trade execution, real-time quotes and market data. click here.

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