{"id":40662,"date":"2015-06-27T23:56:52","date_gmt":"2015-06-28T06:56:52","guid":{"rendered":"https:\/\/brookstradingcourse.com\/?p=40662"},"modified":"2015-07-04T10:20:06","modified_gmt":"2015-07-04T17:20:06","slug":"paper-trading-a-simulated-account","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/ask-al\/paper-trading-a-simulated-account\/","title":{"rendered":"Ask Al: Paper trading a simulated account"},"content":{"rendered":"

BPA trading room Q&A: May 15, 2015<\/h2>\n

Al, what do you think about paper trading in a simulated account? Once a trader knows how to use the platform, is it a help or a hindrance to become a profitable trader? I sim trade a lot, and I\u2019m not sure if it has a positive effect.
Audio duration: 2min 54sec
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Audio transcript<\/h2>\n

Paper trading vs live trading<\/h3>\n

\"paper-trading<\/p>\n

I don\u2019t have any problem with sim trading. I\u2019ve done it; everybody has done it. I personally don\u2019t like it because I cheat, I lie. Not in general; when I\u2019m talking to people, I don\u2019t cheat and lie, but if I\u2019m sim trading, I\u2019m talking to myself and I lie. I lie all the time. So it\u2019s easy to tell myself, \u201cOh, I would take that,\u201d or \u201cI would not take that,\u201d or \u201cOh, I took a bad trade and I lost, and maybe I should delete that trade because it was really one I should not have taken.\u201d And you end up erasing\u2014or I end up coming up with reasons for why all my losing trades were trades I really wouldn\u2019t have taken if I were paying more attention or if I really was concentrating on it.<\/p>\n

And all my winners, I look at them and say \u201cOh, yeah\u2026 I was also trading in my real accounts, and therefore, I couldn\u2019t focus on my simulated account, and I took profits earlier than I normally would have taken\u201d, and it\u2019s just all lying to myself. For me, that\u2019s my problem with simulated trading: it\u2019s just really easy to lie to yourself all the time, and make yourself believe that the way you\u2019re trading it is not the way you would trade it if it was real money.<\/p>\n

Forex accounts \u2014 low cost trading tution<\/h3>\n

I think one of the nice things about Forex markets is that you get to trade a very small account with very little risk, and I think trading real money is always better than trading pretend money because it\u2019s just harder to lie. The dollars are truth.<\/p>\n

And for Forex accounts, you can trade 10,000 units and you can say, \u201cWell, Al, if I make 10 pips on 10,000 units, I only make $10.\u201d That\u2019s right, you only make $10. On the other hand, you\u2019re not going to go broke doing it, so to me, it greatly reduces the cost of tuition as you learn to become a trader, so I think that is a big advantage to Forex accounts. And there\u2019s enough movement during the day in the different markets, especially if you stick with the major markets, like the Euro versus the Dollar, the Euro versus the Yen, the Dollar versus the Yen. Those are probably the big three. I also trade the Dollar versus the Canadian, the Australian dollar versus the Dollar, the British pound, the Swiss franc.<\/p>\n

But there are enough choices and there\u2019s enough movement so that if you\u2019re starting out, my thought is if I were in that position, I would rather trade real money in a Forex account trading 10,000 units than paper trading\u2014anything else because of that lie factor. I think it becomes more important if you have real money at risk, even if the real money is very small.<\/p>\n

So to me, my thought is I would rather have a trader trade a Forex account with a very small position size than a simulated account, just so that they get comfortable with real money. The emotions are different if it\u2019s real money. Even if it\u2019s small real money, I think the emotions are different if you have real money at risk.<\/p>\n

Al Brooks<\/em><\/p>\n

Information on Al’s Online day trading room<\/a><\/p>\n

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BPA trading room Q&A: May 15, 2015 Al, what do you think about paper trading in a simulated account? Once a trader knows how to use the platform, is it a help or a hindrance to become a profitable trader? I sim trade a lot, and I\u2019m not sure if it has a positive effect. […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[159],"tags":[],"class_list":{"0":"post-40662","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-ask-al","7":"entry","8":"has-post-thumbnail","9":"override"},"featured_image_src":null,"author_info":{"display_name":"BTC Admin","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/richardhk\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/40662","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=40662"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/40662\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=40662"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=40662"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=40662"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}