Paper Trading
Paper trading is practicing with fake money on a simulated account. You make all the same trades you would with real money, but there's zero financial risk.
Understanding the Concept
Every successful trader started by losing money. The question is whether you want to lose fake money or real money during your learning phase. Paper trading lets you test strategies, learn platform mechanics, and build confidence without risking capital. You can blow up your account five times and learn from each mistake. But here's the problem: emotions. Paper trading doesn't replicate the fear of losing $5,000 or the greed when you're up 50%. You'll take risks with fake money you'd never take with real money. Still, it's better than going straight to live trading with zero experience. Use it to learn, but don't stay there forever. Graduate to small real money positions once you're consistently profitable on paper.
Real-World Example
You paper trade for three months testing a breakout strategy. You're up 35% on fake money. Now you start with $1,000 real money to see if you can replicate results when it actually matters.
How Strykr Helps
Strykr's AI assistant helps you understand and apply Paper Trading concepts to your trading. Get personalized guidance and real-time market analysis to make better decisions.
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