Why paper trading is considered futile

[jain.er]

I have hear many saying that paper trading is useless, and not much of s help.

I want to know why ppr trdng is considered futile. Please share your thoughts

 

[columbus]

I have hear many saying that paper trading is useless, and not much of s help.

I want to know why ppr trdng is considered futile. Please share your thoughts

Personally ,I do not think Paper Trade is useless.Doing it for Month or so
will be helpful.Since Money Management is not involved (Very Very Important)
many believe that it is useless.

 

[mona10]

I also want to know about paper trading previously i also read in this forum that it is useless but if with money managmentwe are doing paper trading and getting profit also .Is it right time to enter real market on that basis of it or wait for sometime .please clear this point

 

[columbus]

I also want to know about paper trading previously i also read in this forum that it is useless but if with money managmentwe are doing paper trading and getting profit also .Is it right time to enter real market on that basis of it or wait for sometime .please clear this point

Paper Trading----->(Paper Trading+Real Trading)---->Real Trading.

In Paper Trading you can Buy the shares/Lots at your wish.This can not be
done in Real Trading if you account does not support.That means Low Account
Balance.Here Money Management comes into picture.

 

[pakatil]

As i reckon it, most ppl enter the entries and exits after price reaches there. There is always scope for modifying values, if trade goes against.

Mind works totally different, when real money is involved. Greed and fear overtakes all.

May be trying with a simulator wld be better.

Like GCI Terminal or NSE Paathshaala.

 

[jain.er]

The logic is still not convincing enough, i meant i can assume the one will paper trade only to the extent one hopes to do real trading.

For ex. if I want ot trade on lot in real trade I will do pper trade for 1 lot.
Similarly I will apply all the rule of MM in real trade in paper trade too, also one can be conservative will P/L one gets in paper trade to be on the safer side.

 

[Smart_trade]

The logic is still not convincing enough, i meant i can assume the one will paper trade only to the extent one hopes to do real trading.

For ex. if I want ot trade on lot in real trade I will do pper trade for 1 lot.
Similarly I will apply all the rule of MM in real trade in paper trade too, also one can be conservative will P/L one gets in paper trade to be on the safer side.

In paper trading the greed and fear does not come into picture as no real money is involved. Mind plays terrible games in trading....say after 3 consecutive losses another trade comes .....in paper trading ...no problems...but in real trading shall we take that trade ? Our mind tells us ......hey the market seems to be in sideways mode...so skip this, let us see what happens...we skip this trade and it goes to become a big winner....r even if we take the trade, we are likely to say....damn the trade is recovering 50 % of the earlier losses ...let me grab it, balance 50 % I will recover in the next trade.....we take profits and the trade goes on to give us 3 or 4 times the earlier losses...and after this trend move, we take the next trade and get whipped as the market now is in sideways phase,,,,so few more losses....this cycle continues and we are never in positive side of the ledger.

Nothing wrong in paper trade but in max 1-2 months actual trades should start....I have seen traders who do backtests and papertrade for 1 year......and they loose the ability to pull the trigger and take real trade, they become too theoratical and timid....just one needs to avoid that happening....I would prefer actual trading on small lots (like mini nifty )to give feelings of greed and fear which is essential part of any trader's trading life....

Smart_trade

 

[mona10]

Thanks for all replies.So that is the reason why money managment is playing a vital role.Actually i am learnin money anagment .I hope I need some more days to start.

 

[onlinegtrash]

paper trading = shooting people in video game
actual trading = actually in front of firing line


I can't tell paper trading is totally useless because if you can't make it on paper, you can be quite sure you can't make it in actual trading.

BUT

great in paper trading has very little correlation in successful real trading.

 

[mparmar]

As i reckon it, most ppl enter the entries and exits after price reaches there. There is always scope for modifying values, if trade goes against.

Mind works totally different, when real money is involved. Greed and fear overtakes all.

May be trying with a simulator wld be better.

Like GCI Terminal or NSE Paathshaala.

I have experienced NSE Pathshala and found it very good.