subject: Practice Makes Perfect with Futures Paper Trading [print this page] Everyone knows that the more you practice something, the better you get at it. This is no different with emini day trading. All new traders are encouraged to take courses, but paper trading is a great way to put what you have learned into practice, without a real commitment.
Putting a lot of money into anything is always a risk; such is the case with day trading. You do not know if you are going to lose the money or make a profit off it, especially in the beginning. All new traders should definitely take a day trading course, or at least study related books very well, so that you have an excellent knowledge on the system and how it works. There are a lot of tricks and tools to understand before jumping into this, especially since your capital is involved.
On top of courses and books, the best way to prepare before seriously trading is by paper trading. Paper trading is also sometimes called virtual stock trading. Basically it is trading in a stimulated situation without using real money. The point is to practice trading without having to commit financially.
There are two good ways to paper trade, one is manual and the other is electronic. The first way is done by watching the market and just pretending to trade, or pretending to buy and sell. Keep a pen and paper handy to record every buy and sale you make. This way you can keep track of whether your trading methods are resulting in a loss or in a profit.
The second way to paper trade is by using virtual stock trading programs, which do the same as above, but electronically. The programs give you a certain number of trades to use that do not involve your money. You use fake money instead. These programs allow you to practice and find out what methods work best. They also allow you to trade just for fun if you wish; you may have no intention of trading with real money down the road. The electronic programs make it realistic and also make it easier to review and analyze your results.
Either way, paper trading is an excellent way to practice until you are ready for the real deal.
