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Is there a benefit to paper trading?
- Thread starter rin4et
- Start date
I am also a stock trader. I trade 5 dollar stocks as well as 200 dollar stocks. But I have a fixed dollar loss on each trade. A five dollar stock may be going crazy, so I need to risk 40 cents, as opposed to a consolidating 200 dollar stock where I need to risk a dollar.
Maybe you need to abandon the fixed position size, and move to a fixed risk per trade.
With day trading there is no time to think. By the time it takes me to calculate how many shares of a stock that is trading @ $14.2 I can buy with 3k and then typing my order in, one minute goes by and the stock has already taken off.
Also I rarely trade stocks that are more than $15 due to low beta.
Fear of a loss. I don't like losing more than $30 on a trade. So I skip many trades unless I am 95% certain it will go higher and I sell quickly after I get in for fear of losing my gains."I am having trouble sticking to my strategy /plan." - why ?
With day trading there is no time to think. By the time it takes me to calculate how many shares of a stock that is trading @ $14.2 I can buy with 3k and then typing my order in, one minute goes by and the stock has already taken off.
Also I rarely trade stocks that are more than $15 due to low beta.
You sound like Maverick from Top Gun. Yes there is time to think. You should always be thinking about risk and calculating share size. It shouldn't take that long.
BTW, HMNY was just an example.
Fear of a loss. I don't like losing more than $30 on a trade. So I skip many trades unless I am 95% certain it will go higher and I sell quickly after I get in for fear of losing my gains.
This is pretty common, actually.
No I don't have to make money. I have a software job after market hours making 6 figures. But I want to stick to my strategy. That is the whole point of trading. I think I will reduce my position size to 1k for a few months and then increase it to 3k down the road. This seems to be the better option rather than paper trading.Let me ask another question. Do you HAVE to make money right now? I have been in that situation. You triggered that memory when you said you were afraid to let a profit get away.
No I don't have to make money. I have a software job after market hours making 6 figures. But I want to stick to my strategy. That is the whole point of trading. I think I will reduce my position size to 1k for a few months and then increase it to 3k down the road. This seems to be the better option rather than paper trading.
Good. I wish I had your other job years ago. Just do whatever it takes to keep a solid foundation of confidence. Being in the market small is always better than sim trading.
All the best.
JNB
Thank you!! I will keep you posted with my progress.Good. I wish I had your other job years ago. Just do whatever it takes to keep a solid foundation of confidence. Being in the market small is always better than sim trading.
All the best.
JNB