It's time to start gaining experience without giving up your trading position. The ideal option is paper trading, also known as virtual trading, which enables newcomers to observe real-time market activity and make purchasing and selling decisions that establish a theoretical performance record. Typically, a stock market simulator is used to simulate the operation of a real stock exchange in appearance and feel. Make some transactions with various holding times and techniques, then examine the outcomes for glaring errors.
A free stock market simulation is available on Investopedia, and many firms also permit paper trading using their real money entry methods. Additionally, this will train the program to prevent you from pressing the incorrect buttons when experimenting with family money.
When will you switch to trading with actual money, then? There is no ideal solution since even if your paper results appear great, a problem in simulating trading will likely become apparent once you begin to trade for real.
Traders must live harmoniously with the opposing feelings of greed and fear. These emotions, which can only be felt via genuine profit and loss, are not experienced in paper trading. In actuality, this psychological factor removes more freshmen from the game than poor judgment. As a novice trader, you must acknowledge this difficulty and deal with any outstanding financial and self-worth problems.
