Paper trading is a great way to learn how we will adapt to market movements in real time. It allows us to “practice” without losing real money.
The trick is to ask ourselves, “If this was real money, would I make this trade?” If no, then we are just playing a video game.
In this article, the last paragraph discussing the stem of a wine glass is all important. It correctly illustrates the fatal flaw of simulators; namely our emotional control under fire cannot be evaluated with play money.
By all means a trader new to futures should be using a simulator; but after some experience, showing positive results, entering into the live trading arena is the only way to test what Jesse Livermore’s calls the three big keys: Timing, Money management, and Emotional Control.
Self deception and denial is a well-developed skill for many of us, and we need to remove this type of thinking from our psyche if we are to become successful traders.
Eminiwizard 