Should you Paper Trade?
Here is a quick insight on why or why not you should start out with paper trading when learning to invest in the stock market.
Paper Trading Or simulation trading is offered by many different brokerages to allow their customers to practice buying and selling and placing orders on their platform without using REAL money. This tool has really become popular in the last few years because beginners are able to use the paper trading account to practice trading and prove to themselves that they can be profitable before actually even making a deposit or trading with a live account.
The Benefits of Paper Trading:
- Zero Risk
- Get a better understanding of brokerage functions
- Great for Practicing
- Can help build confidence
- Great tool for teaching
Negatives of Paper Trading:
The majority of traders just starting out get super excited, download their brokerage and fund it. And then the next step is where most traders fail... They take positions without understand the 'why' and have a trading plan prior to buying what someone says is "going to the moon". Which is why the fact exists 90% of day traders loose money at first.
If more beginner traders learned how important paper trading is they would have at least some level of experience and practice before they risked their hard earned money.
If this is you and are interested in learning more about paper trading or interested in how you can get started paper trading, join our free Techbud Solutions Discord Group and shoot Ricky Gutierrez a message.
Link to our free discord: https://discord.com/invite/kwVQtmu