Paper trade stock market
with free stock trades
Learn to trade stocks
using virtual stock trading methods
If you want to learn to trade stocks then you should be familiar with paper trade stock market methods. These methods allow you to create stock trading system that fit your requirements.Every trader should have several stock trading systems and strategies. Why ? Stock market is not only in one mode. It is not bullish all the time. It turns to bearish mode or to trading range mode. All these modes could be present for longer period then one can think. You can always hear about gurus of stock market when it is in bullish move. Everybody is making money and everybody thinks it is easy. They are buying every dip and waiting for new highs. These "stock traders" or "investors" have not any stock trading strategy, stock trading system for
risk management
and no
stock trading business plan
at all. When stock market changes its mood then these traders and investors realize huge losses. Most of them are wiped out. They did not understand that they must learn to trade stocks before they enter market. And that they should have different stock trading systems for different market types.
Free stock trades
using virtual stock trading methods
There are several option how to paper trade stock market. The easiest way is to really write all virtual trades onto the paper. OK, today probably it will be better to write it into some Excel sheet. I did it when I learned stock trading myself years ago.Another option is to use virtual stock trading by
stock simulator
available by broker. But you must use stock simulator which is providing real realtime data about trading. I like Interactive Brokers - it is one of the
best stock brokers
available these days I think. If you have opened account with this broker, you can have also paper trading account available. Then you can use real realtime stock market data provided by this broker also with your virtual trading account. And you can do free stock trades on this paper trading account without risking any money. You can test your trading strategy if it works. If it does not work during your paper trade stock market time then it will not work in real trading. But if your free stock trades on your virtual stock trading account generate virtual profit then you can think about testing it on real trading account with real money.
How long do you need
to do free stock trades
on your virtual stock trading account ?
It depends. But I think that to be sure that your stock trading strategy works in different stock market situation you must do these free stock trades for 3 to 6 month as minimum.
Free stock trades can help you
to test new strategies
on virtual stock trading account
Paper trade stock market methods also allow you to test new ideas. If you have already tested stock trading strategy , you can test some new stock trading strategy or stock trading system for risk management from time to time. And you can utilize paper trade stock market trading methods very much. You can use your virtual stock trading account and do free trades. And test your new or modified stock trading strategy or risk management system.
How to evaluate your paper trade stock market trading methods ?
If you use Excel then you can calculate what are results of your virtual stock trading. But it can take a lot of time. It could be better to use some
stock trading journals
to record your free stock trades. These stock trading journals provide different reports which can help you to better understand your stock trading strategy details.
Return back from Paper trade stock to Stock trading strategy
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