Is there a benefit to paper trading?

Discussion in 'Risk Management' started by rin4et, Sep 27, 2017.

  1. "I am having trouble sticking to my strategy /plan." - why ?
     
    #11     Sep 27, 2017
  2. jnbadger

    jnbadger

    HMNY and NVDA are good examples of what I am talking about.
     
    #12     Sep 27, 2017
  3. rin4et

    rin4et

    With day trading there is no time to think. By the time it takes me to calculate how many shares of a stock that is trading @ $14.2 I can buy with 3k and then typing my order in, one minute goes by and the stock has already taken off.
    Also I rarely trade stocks that are more than $15 due to low beta.
     
    #13     Sep 27, 2017
  4. rin4et

    rin4et

    Fear of a loss. I don't like losing more than $30 on a trade. So I skip many trades unless I am 95% certain it will go higher and I sell quickly after I get in for fear of losing my gains.
     
    #14     Sep 27, 2017
  5. jnbadger

    jnbadger

    You sound like Maverick from Top Gun. Yes there is time to think. You should always be thinking about risk and calculating share size. It shouldn't take that long.

    BTW, HMNY was just an example.
     
    #15     Sep 27, 2017
    Overnight likes this.
  6. jnbadger

    jnbadger

    This is pretty common, actually.
     
    #16     Sep 27, 2017
  7. jnbadger

    jnbadger

    Let me ask another question. Do you HAVE to make money right now? I have been in that situation. You triggered that memory when you said you were afraid to let a profit get away.
     
    #17     Sep 27, 2017
  8. rin4et

    rin4et

    No I don't have to make money. I have a software job after market hours making 6 figures. But I want to stick to my strategy. That is the whole point of trading. I think I will reduce my position size to 1k for a few months and then increase it to 3k down the road. This seems to be the better option rather than paper trading.
     
    #18     Sep 27, 2017
  9. jnbadger

    jnbadger

    Good. I wish I had your other job years ago. Just do whatever it takes to keep a solid foundation of confidence. Being in the market small is always better than sim trading.

    All the best.

    JNB
     
    #19     Sep 27, 2017
  10. rin4et

    rin4et

    Thank you!! I will keep you posted with my progress.
     
    #20     Sep 27, 2017