Is paper trading good or bad? - Traders Hideout | futures io social day trading
futures io futures trading

Is paper trading good or bad?
Updated: Views / Replies:10,015 / 28
Created: by dario1 Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 100,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Thread Tools Search this Thread

Is paper trading good or bad?

  #1 (permalink)
Ontario, Canada
Trading Experience: None
Platform: NT
Broker/Data: IB
Favorite Futures: gold
dario1's Avatar
Posts: 405 since Jan 2012
Thanks: 62 given, 52 received

Is paper trading good or bad?

Is paper trading good or bad?

Reply With Quote
  #2 (permalink)
Quick Summary
Quick Summary Post

Paper trading can be either valuable or worthless, depending on your approach.

Last edited by dario1; August 12th, 2012 at 03:30 PM.
  #3 (permalink)
Ontario, Canada
Trading Experience: None
Platform: NT
Broker/Data: IB
Favorite Futures: gold
dario1's Avatar
Posts: 405 since Jan 2012
Thanks: 62 given, 52 received

1. Good

Great for trying/tweaking new systems

Reply With Quote
  #4 (permalink)
Ontario, Canada
Trading Experience: None
Platform: NT
Broker/Data: IB
Favorite Futures: gold
dario1's Avatar
Posts: 405 since Jan 2012
Thanks: 62 given, 52 received

1. Bad

Transition from paper to real -- there's always going to be a difference between paper and cash trading.

Reply With Quote
  #5 (permalink)
Trading Experience: Advanced
Platform: NinjaTrader
Broker/Data: IB / Kinetick
Favorite Futures: ES, ZN
Fadi's Avatar
Posts: 483 since Apr 2012
Thanks: 654 given, 634 received

My feeling is that if you cannot be profitable paper trading, then you will not be profitable trading in the real markets.
Paper trading allows you obviously to practice your trading skills and is in fact an excellent way to practice... Also you will not suffer from undercapitalization like many new comers do, since you usually get 100k or sometimes 1million of sim capital to trade. At least, money management wise, you will not be pushed to over risk for peanut returns.

Then, once you are consistently profitable over a period of time and you feel ready for the real markets, you shall try trading the real markets. The key is to be sure you are consistently profitable first; you will feel it when you are! If you do not feel it, then you are simply not ready to trade the real markets

When making the transition from paper trading to real trading, the psychological issue may be or will surely be felt and have to be dealt with just like when you learned the technical skills of your trading system. But at this point, you don't have to concentrate and waste lots of energy working on the trading skills and money management; but most of your focus will be directed at the psychological aspect.

Basically, one thing at a time as we say little by little.

Successful people will do what unsuccessful people won't or can't do!
Reply With Quote
The following 3 users say Thank You to Fadi for this post:
  #6 (permalink)
Trading Experience: Advanced
Platform: NinjaTrader, Multicharts
Favorite Futures: Spot Forex, Gold, Silver
Posts: 176 since Oct 2010
Thanks: 114 given, 114 received

I think that trading with real money is completely different emotional experience to trading with paper. Especially if you are trading for a living that is your sole income is from trading. People just don't behave the same when there is no risk.

I'll qualify my post by adding I am only talking about discretionary trades. Auto trading systems should and must be tested and tuned only on paper account.

Reply With Quote
  #7 (permalink)
Detroit, Michigan
Trading Experience: Beginner
Platform: Ninja Trader
Favorite Futures: Futures
Posts: 296 since Nov 2011
Thanks: 405 given, 282 received

IMHO paper trading (SIM) if done for too long just enables (by repeating) bad habits and this can affect one's LIVE trading dramatically. Of course, a certain amount of SIM to be consistently profitable as suggested above and to test out new strategies is a must. However, you just can't duplicate the pressure of LIVE trading and my experience has been that I needed to un-learn some of the bad habits learned by trading in SIM for way too long. The biggest bad habits for me were not being careful enough and over-trading. One can still be consistently profitable in SIM while still indulging in those bad habits, however the LIVE market (with the extra oomph of real money) tends to punish those bad habits (unlike SIM).

Reply With Quote
  #8 (permalink)
Trading Experience: Advanced
Platform: MultiCharts
Broker/Data: IB & Iqfeed
Favorite Futures: ES , CL
sptrader's Avatar
Posts: 543 since Apr 2010
Thanks: 1,093 given, 704 received

I found that if you're "desciplined", that paper trading is invaluable for discovering good patterns to trade and to develop your "Rules".... As others have stated, DO NOT trade with real money, until you can "Consistantly" make money sim trading..
Then, when first trading with real money, trade ONLY your rules developed through sim trading (that's where the descipline comes in) and trade the smallest size possible, until you're comfortable and making money consistantly...
I've been trading for many years and I still Sim trade (currently sim trading CL for several months) because I've never traded it before..each market has it's own personality- it's important to learn its behavior with play money first..

Reply With Quote
The following 3 users say Thank You to sptrader for this post:
  #9 (permalink)
PTA, Gauteng
Trading Experience: Advanced
Platform: Self built + Sierra + TWS
Favorite Futures: Stocks and Options
DarkPoolTrading's Avatar
Posts: 1,036 since May 2012
Thanks: 1,244 given, 1,312 received

My feeling is that paper trading is useful but ONLY if approached with the right mindset. In my opinion the right mindset requires that you:

- Treat every paper trade exactly as if it were real. You cant allow yourself to take a trade but then ignore it or take it off because you see at a later stage that it was actually a stupid trade. You cant allow yourself to remove a trade you put on by convincing yourself 'I wouldn't have taken that trade in real life so ill just ignore the fact that I took it now'. If you take a stupid trade while paper trading, well then you trade your way out of it as best as possible (according to your rules), and you take the P&L loss.

- Although it is impossible to replicate all the emotional and psychological factors of live trading, you need to at least try to imagine what you will be feeling at the passing of every single bar. Dont just blindly wait for the next bar/setup/entry/exit, because the emotions you are going to feel when live will make every tick a battle (at least to start with), so you best treat it that way when paper trading.

What works for me, is that I keep reminding myself that I plan on making this my career. The last thing I want to do is trade for 6 months, blow up my account because I wasn't properly prepared and end up as a corporate stooge again. I treat paper trading with the significance it deserves because if I cant get that right, then I WILL NOT trade live and have zero hopes of leaving the corporate world behind me.

With all that said, I dont believe anything will competely prepare you for live trading.


Reply With Quote
  #10 (permalink)
Legendary Market Wizard
Boca Raton
Trading Experience: Advanced
Platform: Variety
Broker/Data: Optimus Futures, LLC
Favorite Futures: Futures
mattz's Avatar
Posts: 2,352 since Sep 2010
Thanks: 2,290 given, 3,386 received

I am going to say something that you will find odd but please read this post until the end.
Paper Trading is ONLY useful once you have traded real live funds, in my honest opinion.

The negative of paper trading:
1) It will not prepare you emtionally for trading real live funds
2) It could give you a sense of achivment in methods where you have no
chance in getting filled in real live trading (scalping methods, going for 2 ticks, etc)
3) Giving you "shelter" every time you lose just to try another paper trading method that
could be useless in real life.

The Positive:
1) Tweaking a method that has stopped working because of volatility, wide/narroe ranges, etc
2) Trying out your method that actually works on a different market
3) letting the same system run on a paper trading mode because it ran its course. Now you are not sure if the system is broken or this is just a temporary drawdown.

Essentially, a paper trader that has real experience will have an edge in his approach while going back to demo because he/sher could know what works and does not in real life. The application will be a lot more practical.

I am not saying one should not paper trade, but anyone can open a parachute when they are on the ground.

PM with any questions about optimusfutures (800) 771-6748 (561) 367 8686. THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES TRADING.
Reply With Quote
The following 2 users say Thank You to mattz for this post:


futures io > > > Is paper trading good or bad?

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

futures io is celebrating 10-years w/ over $18,000 in prizes!

Right now

Thanks for everything -- $250 in Amazon Gift Cards ready to give away

Right now

Journal in July -- over $2,500 in prizes w/NinjaTrader


Similar Threads
Thread Thread Starter Forum Replies Last Post
Tradestation futures brokerage -- good or bad? tortoise Reviews of Brokers and Data Feeds 14 September 7th, 2014 02:02 PM
Strategic Day Trading Room. Great, Good or Bad? tickvix Currency Futures 2 May 5th, 2012 06:48 AM
am I a good example of bad luck Superdoug3 Reviews of Brokers and Data Feeds 9 November 2nd, 2011 09:57 AM
Good Earnings, Bad Economic Reports Tug Stocks Two Ways Quick Summary News and Current Events 0 July 17th, 2010 03:40 AM
Good Models Gone Bad MXASJ Traders Hideout 3 October 25th, 2009 02:05 PM

ai, auto trading, back testing, bracket, broker, brokers, cl, cme, combine, data, discretionary, discretionary trading, dow, drawdown, es, est, feedback, forex, futures, how to, list, live trading, living, loss, micro, money management, multiple lots, orders, paper, paper trading, patterns, people, platform, play money, price action, profitable, repeating, scalping, short, signals, sim, sim trading, sim_trading, size, slippage, spot forex, stocks, strategies, strategy, systems, tick, trade live, traded, trading, trading method, trading system, trading systems, training, volatility

All times are GMT -4. The time now is 08:27 PM. (this page content is cached, log in for real-time version)

Copyright © 2019 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432 WhatsApp Business,
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2019-06-24 in 0.23 seconds with 14 queries on phoenix