Paper Trading Strategy?

Discussion in 'Strategy Building' started by GIG, Jul 28, 2003.

  1. Brandon, trading is a very very risky business. Therefore, trading basically equals to managing risks for some expected returns, rather than making big money or high returns (like your mentioned percentage by those guys).

    When you start trading, you must trade only the absolute minimum amount (such as 1 share if possible) which should not exceed 1 or 2% of your risk capital that ideally should be not more than 5% of your total capital.

    Then you can learn from your (most likely loss) experiences. You need to investigate your losses and gains, and you have to stop trading for a while, maybe for ever, after lossing a 5% capital.

    The aim is you have to devise an approach so that you are able to servie for several years based on your available capital.

    I can only share with you my own experiences. I don't know whether the above suggestion would be suitable to you. You therefore should ask more people/friends/relatives and other ET members for different suggestions/opions.

    Good luck again.

    :)
     
    #11     Jul 29, 2003
  2. That's truly true. :eek:
     
    #12     Jul 29, 2003

  3. Paper trading is not a MUST. It is recommended. You should know the platform for sure which I agree. I understand the benefit of paper trading but it is far away from real $$$$.

    Like others have mentioned, if u trade with real $$$$ start from the smallest possible shares or contracts. If u have a small capital, paper trading might be the best way. Or trade with real $$$$ to get the feel and paper trade to confirm your methods and get back to real $$$.

    You don't want to end up becoming good in masterbation and bad on the real deal. Masterbation doesn't make you a good. The real experience makes u good.

    Good luck!

    trend :D
     
    #13     Jul 29, 2003
  4. Whether you go paper or real, I would highly recommend that you do NOT trade delayed data. Unless you're trading 60 minute bars or greater, I think a 15 minute delay will ravage most systems. Just a ball park, I would guess this could knock at least 20-30% off a decent swing system if not much more.

    On the other hand, I concur with the others, small lots of real money are better than paper trades. You'll get the tactical experience necessary for the real thing. Not sure about this lycos setup that only does market orders. If I were you, I would go with an inexpensive piece of real time charting software. From the sound of it, maybe end of day trading off daily bars is a good way to go. If you traded the etf's, lycos livecharts will actually give you very basic realtime index charts for free if I remember correctly.

    enjoy
     
    #14     Jul 30, 2003
  5. :eek:

    Ahhh........

    I want to see a day trader trading delayed data on ES.

    LOL

    bwahahahahhahahaha

    good trade!!

    trend:D
     
    #15     Jul 30, 2003
  6. Don't waste time paper trading. You'll find out if trading is right for you once you hit the real thing. Provided that you survive long enough you'll learn things here and there that no one talks about or keeps secret in order to stay in the game. Trading is almost analogous to war. Once the first shots go off and you start suffering casualties, do you run or stay and fight? If you run, your done, go do something else. If you stay and fight, you wind up learning more about yourself that many never many never come to realize.

    As for models and tricks, they'll work as long as everyone isn't doing the same thing. Taxes and commissions eat away gains. Inevitably, you'll figure out investing for the long haul will outperform short term trading. Although times do arise where short term trading becomes a no brainer, but those secrets you'll learn along the way. Good luck.
     
    #16     Aug 6, 2003