You might have heard a lot of YouTubers saying “Practice with Paper Trading, then you can start with a real account”
But, What is Paper Trading?
Paper trading is a form of simulated trading where you can make trades without investing your real money.
This is usually done by writing on paper and that’s where the term paper trading came from ( but we now have some amazing apps to perform paper trading )
Don’t worry in this blog post we’ll also see what are the best apps/website you can use to practice Paper trading.
Pros of Paper Trading
No Risk – There is no risk for your money as you won’t use real money to trade
Builds Confidence – It helps you build confidence in your entries and exits
No Stress Involved – You can trade without any stress as you’re not risking any money
Cons of Paper Trading
Euphoria Trading – Since there is no risk involved you might be taking trades that you won’t be taking when you’re trading with your real account
Missing out on Profits – Let’s say you bought 1000 shares of X for 15$ and the stock just skyrocketed to 25$ in a couple of days now you could have made 10,000$ but in reality, you didn’t make any money as it’s all virtual money.
Emotional Reality – As you know there is no risk involved in paper trading so your emotions will not be the same when you trade with a real account where you will have to deal with actual risk.
BEST APP FOR PAPER TRADING
I have used a lot of paper trading apps and websites but my only recommendation is Neostox which is completely FREE to use too.
Neostox is one of the best Paper trading apps that you can use. The best part is you can trade on Equities, Futures & Options with real-time market updates.
Neostox gives you 10 Lakh Virtual Money which you can use to practice your trading system or backtest your new strategies