Paper trading is not required, I wasted lots of time doing it. To establish a system to trade one can just study historical charts. Once system is decided upon one needs to go for real trading with absolute minimum size and increase size gradually in line with proper risk management.
gmst, You're now a profitable trader with more trading experience and paper trading is part of that routine to maintain your profitability. I wouldn't care what others thinks about your routine. Seriously, if it ain't broke...don't fix it. With that said, I see the words "paper trading" thrown around loosely because there are different meanings for such to different folks. For example, I've seen traders literally just pretend their trading on paper via writing down entries/exits...not using an actual simulator program. Another example, I've seen traders say they're paper trading via a 3rd party program that's not even their broker trade execution program. Whereas, when I see the words "simulator trading"...that has a more obvious meaning related to your broker trade execution program that switches between "simulation mode to Live mode". My personal views about simulation trading, it should only be used to learn the broker trade execution platform until you've understood the program so that you're not making trade errors due to not understanding the broker software. Its also during this period you can simulate your trade strategy but only until you've mastered using your broker software. Yet, I do understand there are some traders that have a "discipline issue" in using their trade strategies that results in them not having the ability to follow their trading plan. Those traders (the ones that show proof of profitability while struggling with their discipline) say simulator trading for the purpose of learning to use their trade strategies properly with discipline...its helpful. Yet, eventually even these traders will need to stop the simulation trading to go live mode with real-money because simulation trading is not able to duplicate the emotions, reaction skills (bad or good) when real money is on the line. By the way, if you're not profitable in real money trading...stop trading. Go back an backtest your trade strategies and determine what you're doing wrong...if its just you with discipline problems or your trade method but don't go back to simulation trading after learning your broker's trade execution software because you can resolve discipline problems without using a simulator. Next, after you've determine what caused your trading problems and then only if you're able to resolve the problems...go back to real-money trading with the smallest size possible and build back up to your normal size trading when you have proof (consistently profitable). Anyways, I won't debate with a profitable trader's daily routine. Much easier to debate with someone that's not profitable. Profitability is the final answer to determine if something is useful or not for that particular person only...opinions by others no longer has merits when it comes to your own trading..they just are not you especially if they aren't profitable themselves.
I just took First Place in the Bulgaria Sim Competition and won a bottle of Rakia (better then Tequilla)... Yeap...it's a great false confidence builder...but useful to try out things...and to escape the boredom of listening to "Fast Money" & Jim Cramer's superb stock picks...