Discount market action. Real trading is more of an ongoing process than paper trading. If the market does well the next few weeks, that investor may think they have a winning paper trading strategy. However, the good performance may have more to do with lucky market timing than actual success. Your Paper Trading Strategy A paper trading program can be set up any way an investor wants.
Paper trading can be a valuable tool for investors.
However, in many cases it is done so ineffectively that it actually creates a false understanding of the market, because the methodologies fall apart when applied to real time trading. To avoid falling into such a trap, review the points in this article before starting your paper trading. This will assist you to successfully transfer your own strategy to the real markets, where you should continue to reap the same results.