Comments on: Paper Trading: Nothing to Lose, Nothing to Learn http://www.chrisperruna.com/2007/03/19/paper-trading-nothing-to-lose-nothing-to-learn/ Sat, 13 Mar 2010 03:09:49 -0800 http://wordpress.org/?v=2.8.2 hourly 1 By: James http://www.chrisperruna.com/2007/03/19/paper-trading-nothing-to-lose-nothing-to-learn/comment-page-1/#comment-21584 James Sun, 21 Feb 2010 18:09:02 +0000 http://www.chrisperruna.com/2007/03/19/paper-trading-nothing-to-lose-nothing-to-learn/#comment-21584 Paper trading won't work because it doesn't build trading habits. We are all comfortable and experienced making the thousands of small decisions that happen routinely throughout our lives. Big decisions (marriage, home buying, career) happen only a few times per lifetime. Therefore we aren't good at them, and only make them after lengthy and careful deliberation. Most often we make the wrong choices. The market does not wait while you hesitate analyzing what to do in a crisis with the bulk of your net worth at risk. Typically the situation only gets worse, adding emotional turmoil and indecision. Learned reflexive trading will get you out of the bad situation early by habit. After all, now it's just another trade, and you've been making hundreds of them, familiarly logging into your account and clicking through the sell menu. There's always plenty of time to reflect on what's happening after your routine habits have gotten you out of danger. That is the zone you want to be trading in, which can only be reached by actually doing it. Paper trading won’t work because it doesn’t build trading habits. We are all comfortable and experienced making the thousands of small decisions that happen routinely throughout our lives. Big decisions (marriage, home buying, career) happen only a few times per lifetime. Therefore we aren’t good at them, and only make them after lengthy and careful deliberation. Most often we make the wrong choices.

The market does not wait while you hesitate analyzing what to do in a crisis with the bulk of your net worth at risk. Typically the situation only gets worse, adding emotional turmoil and indecision.

Learned reflexive trading will get you out of the bad situation early by habit. After all, now it’s just another trade, and you’ve been making hundreds of them, familiarly logging into your account and clicking through the sell menu.

There’s always plenty of time to reflect on what’s happening after your routine habits have gotten you out of danger. That is the zone you want to be trading in, which can only be reached by actually doing it.

]]> By: Stock Trading Games http://www.chrisperruna.com/2007/03/19/paper-trading-nothing-to-lose-nothing-to-learn/comment-page-1/#comment-21444 Stock Trading Games Sun, 04 Oct 2009 17:10:52 +0000 http://www.chrisperruna.com/2007/03/19/paper-trading-nothing-to-lose-nothing-to-learn/#comment-21444 These are all excellent points and ones that I agree with wholeheartedly. However, there is one thing that trading games can help a new trader with. That is gaining some knowledge about market mechanics. Things such as the way orders are placed and filled, how the bid/ask process works, slippage on order fills, etc. These are all valuable things that are best learned by watching them occur in real time. These are all excellent points and ones that I agree with wholeheartedly. However, there is one thing that trading games can help a new trader with. That is gaining some knowledge about market mechanics. Things such as the way orders are placed and filled, how the bid/ask process works, slippage on order fills, etc. These are all valuable things that are best learned by watching them occur in real time.

]]> By: Simulators VS real trading - InformedTrades http://www.chrisperruna.com/2007/03/19/paper-trading-nothing-to-lose-nothing-to-learn/comment-page-1/#comment-17605 Simulators VS real trading - InformedTrades Thu, 03 Apr 2008 04:30:57 +0000 http://www.chrisperruna.com/2007/03/19/paper-trading-nothing-to-lose-nothing-to-learn/#comment-17605 [...] psychology section of the site. There is also a good article on why it is difficult to make the switch from paper to real trading here. If anyone else has any input on this one please feel free to leave it in the comments section [...] [...] psychology section of the site. There is also a good article on why it is difficult to make the switch from paper to real trading here. If anyone else has any input on this one please feel free to leave it in the comments section [...]

]]> By: chrisperruna.com » Blog Archive » On Vacation until Sunday April 6 http://www.chrisperruna.com/2007/03/19/paper-trading-nothing-to-lose-nothing-to-learn/comment-page-1/#comment-17553 chrisperruna.com » Blog Archive » On Vacation until Sunday April 6 Fri, 28 Mar 2008 12:36:01 +0000 http://www.chrisperruna.com/2007/03/19/paper-trading-nothing-to-lose-nothing-to-learn/#comment-17553 [...] Paper Trading: Nothing to Lose, Nothing to Learn [...] [...] Paper Trading: Nothing to Lose, Nothing to Learn [...]

]]> By: Tom http://www.chrisperruna.com/2007/03/19/paper-trading-nothing-to-lose-nothing-to-learn/comment-page-1/#comment-4096 Tom Sat, 31 Mar 2007 00:57:06 +0000 http://www.chrisperruna.com/2007/03/19/paper-trading-nothing-to-lose-nothing-to-learn/#comment-4096 I agree. The best way to learn is to start trading real money. You can read all you want about money management, risk control, emotional control, etc but it doesn't mean a thing till your pulling the trigger with your own cash. I agree. The best way to learn is to start trading real money. You can read all you want about money management, risk control, emotional control, etc but it doesn’t mean a thing till your pulling the trigger with your own cash.

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