Paper Trading Vs The Real Deal

jho · Apr 12, 2006

How is IB's simulator? It tries to calculate slippage does it not?

*Question for dandxg

dandxg · Apr 12, 2006

I don't know, never used IB sim? Maybe you should give it a try?

OddTrader · Apr 12, 2006

I think paper trading is very good, as you would never have to worry about tax.

jho · Apr 12, 2006

dandxg - Ok thanks, I might just do that

OddTrader - And to think there was a million page thread on trading from a yacht to avoid taxes ... you have the perfect solution

Cheese · Apr 12, 2006

Paper trading is live. It is the same as real trading. It simply gives the paper trader repeated practice.

Don Bright · Apr 12, 2006

I hate to say it, but "paper trading" and real trading have nothing in common whatsoever...other than to help with simple order entry.

IMHO

Don

dandxg · Apr 12, 2006

Quote from Don Bright:

I hate to say it, but "paper trading" and real trading have nothing in common whatsoever...other than to help with simple order entry.

IMHO

Don

Spoken like the experienced professional you are Don.

StacyTrader1 · Apr 12, 2006

Paper trading is playing tee ball.

Real trading is a 95MPH fastball wizzing by your head.

Ciao!

-Stacy

jho · Apr 12, 2006

Quote from Don Bright:

I hate to say it, but "paper trading" and real trading have nothing in common whatsoever...other than to help with simple order entry.

IMHO

Don

So paper trading is only useful to verify that your system/method COULD be profitable. After a reasonable test, go live and trade small?

Regards,
jho

Quark · Apr 12, 2006

There is one use for paper trading, but it's not related to testing your strategy.

Use simulation to learn every detail about how your platform works. New traders often have issues with order entry and trade management. In the heat of battle you'll want to be certain you know what clicks do what and what settings are best with regard to confirming entries, entering a limit or stop order, etc.