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How Long Should I Stay On Paper Trader?

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  • How Long Should I Stay On Paper Trader?

    How long should someone, who is new to trading, practice with paper trading before making actual trades?

    This topic is open please post your answers below.

  • #2
    I think demos are a good way to learn your approach with the platform..but real world experience is where its at. Learn to control your losses is what my mentor told me. I have been on and off demo about 2 years between live and demo. getting to a comfortable point now.

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    • #3
      Ah, someone with a REALLY GOOD question!

      If you are longer term position trading, it could take many years to get “results”, and the data set will still be quite small. So if you are longer term position trading, I’d tend to say forget about paper trading.

      If you are shorter term swing trading or intraday trading, doing it for 6 months or so on paper to get a handle on what to expect with real money is extremely wise.

      Do remember that each trade is like a single “trial” in a statistical experiment. To get ACCURATE (low variance) statistics on results, you need data on a minimum of 20,000 trials. In the world of poker, we don’t consider ourselves to have any kind of real and stable “win rate” until we’ve computed it over at least 20,000 hands. So don’t think that a short paper trading period, or even a few years of actual results, tells you that you are a “profitable trader” in a proven statistical sense. Still, given that most traders and certainly most new traders are likely to simply give away money at a fast rate, starting with paper trading is extremely important! And if you can’t win on paper after six months, you might want to consider a different approach or use of your money.

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