Papertrading is only helpful when testing an actual strategy. To think that a strategy will flow from papertrading is naive. You'll pull the trigger perfectly on a paper trade, but will freeze or get out too quickly in real-time. Thus, the distribution of returns on paper versus real-time is not the same. Papertrading is simply a compliment to backtesting, IMHO. And, don't forget: Neither takes into account slippage.
If you were interested in trading Forex, the Oanda FXGame functionality is particularly good, with the ability to trade mini lots in both FX Game and FXTrade (live). This is a great feature if you take F-Traders advice and start trading small size to get some live experience.
Nick, Absolutely agreed and this includes the real-time prices, in addition to the spread widening from COB Friday until the London trading session on Monday morning. Identical as far as I can see
I was talking about Newbie emotions, not experienced. I made over $4,000 yesterday and I am up over $3,000 today. I posted my trades today under "Stock" in the Gold thread. I have learned NOT to get excited when I make money, nor depressed when I lose money. It is a business, pure and simple. No business makes money on every decision they make. This incl GOOG and MSFT.
I second that. The only value to paper trade is perhaps test out "your system". What i mean is find out how you are going to enter and exit whatever it is that you trade given that you are serious about it which is hard to do. After 10 trades you start to enter and exit as you please since nothing is on the line. Those who think they can discipline themselves during a simulation are kidding themselves. I also say open an account and start small. Hell even 10 shares will give you a better idea about how emotions are factored in than paper trading and it wont cost you all that much if your setups are net losers. Good luck.