Day trading is a very competitive profession where the best of the best can make incredible amounts of money. While there are as many approaches to day trading as there are day traders, all successful day traders started with one simple formula: take an online day trading course, practice with paper trading, and then start trading for real.
So what is paper trading and why is it so important?
Paper Trading Explained
Paper trading is the use of trading software to make trades in a simulated real-time environment. Almost all contemporary trading platforms will offer some form of paper trading that simulates the real experience of trading with their software either exactly or nearly so.
These paper trading accounts allow you to trade exactly as if it were the real thing, but with paper money and with the parameters of the account set by you. This is a huge advantage over traders who came before this major benefit because just like a fine tuned athlete, traders need to practice their skills before meeting the competition.