Investing Adventures - Latest Comments in “Paper” Trading is Pointless

Re: “Paper” Trading is Pointless

Jorge — Sat, 05 Jan 2008 03:48:46 -0000

Ange,

I guess my experiences with paper trading haven't been as useful as yours. I've been trading since about June 2007. I've only really paper traded twice, when I first began trading and when I switched from Zecco to TOS. Paper trading did nothing to help me get over my fears of my first trade, my first gain, and my first loss. After I took my first true gain (EMC, +$2000) and my first loss (EMC, -$2500), it was only then that I actually learned how trading worked. Paper trading is definitely safe and should be used to some extent, especially if you're trying a new strategy, for example an iron condor, but for actual trading experience, nothing beats having real life risk in my opinion.

Andre,

Paper trading's a great way to refine your trading rules, I'll admit that! Would backtesting be considered paper trading?

Re: “Paper” Trading is Pointless

Andre Banks — Sat, 05 Jan 2008 02:50:33 -0000

You gotta have the discipline and mind set to think of it as real trading. Paper trading is a great tool

Re: “Paper” Trading is Pointless

Ange — Fri, 04 Jan 2008 23:18:03 -0000

Hey Jorge, if I may, I think that paper trading is a safe way to learn how the market works to some extent, especially if you don't have a "real account" to be able to blow up!! Fair enough if you do have a lazy few thousand dollars that you won't miss, but even with paper trading, I followed on with small trades and built up from there.

Re: “Paper” Trading is Pointless

Jorge — Tue, 01 Jan 2008 23:28:07 -0000

I was going to thank you for the link but I realized it was to Cuban's blog (I'm a Miami Heat fan). Actually thanks for the link. I'll probably post more detailed thoughts on my future thoughts and plans. Frustration's setting in I think with my current situation. Thanks again though!

Re: “Paper” Trading is Pointless

Franklin — Tue, 01 Jan 2008 14:43:00 -0000

Maybe you should read this - http://www.blogmaverick.com/2004/04/13/the-stoc...

Wall Street is desperate for people who know everything about a specific industry. You don't have to quit your field. You can leverage your knowledge and use it as a tool to exchange information and learn.

Re: “Paper” Trading is Pointless

Jorge — Tue, 01 Jan 2008 14:20:31 -0000

You know, I've seriously thought about stepping aside from my PhD track and completing our university's one year master's program in finance for that very reason. Problem is two-fold. First, I wouldn't even know where to start in terms of getting my foot in the door with Wall Street. Second, my future wife won't be happy hah! Out of curiosity, do you think Wall Street would want a nuclear engineer in their ranks? I mean... the damage I could do isn't as bad as what some of those CEOs did in 2007.

Re: “Paper” Trading is Pointless

Franklin — Tue, 01 Jan 2008 04:28:06 -0000

Good question. I do believe that experience trumps education, any time, any day. That said, maybe, just maybe, it might be a wiser idea to experiment with someone else's money, rather than your own? Which is why you should get a job on Wall Street before you bet your life savings. Just my 2 cents, and to each his own, so what's good for me may not be the best thing for you...