Paper Trading Vs The Real Deal

How is IB's simulator? It tries to calculate slippage does it not?

*Question for dandxg

 

I don't know, never used IB sim? Maybe you should give it a try?

 

I think paper trading is very good, as you would never have to worry about tax.

 

dandxg - Ok thanks, I might just do that

OddTrader - And to think there was a million page thread on trading from a yacht to avoid taxes ... you have the perfect solution

 

Paper trading is live. It is the same as real trading. It simply gives the paper trader repeated practice.

 

I hate to say it, but "paper trading" and real trading have nothing in common whatsoever...other than to help with simple order entry.

IMHO

Don

 

Spoken like the experienced professional you are Don.

 

Paper trading is playing tee ball.

Real trading is a 95MPH fastball wizzing by your head.

Ciao!

-Stacy

 

So paper trading is only useful to verify that your system/method COULD be profitable. After a reasonable test, go live and trade small?

Regards,
jho

 

There is one use for paper trading, but it's not related to testing your strategy.

Use simulation to learn every detail about how your platform works. New traders often have issues with order entry and trade management. In the heat of battle you'll want to be certain you know what clicks do what and what settings are best with regard to confirming entries, entering a limit or stop order, etc.