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Tin Mervin Yeung wrote:
> Paper trading is useful only for proving that a particular system is
> useless.
I disagree. The only real differences in paper trading vs. the real thing is
(a) the psychological element, and (b) order placement. Now, some traders
have more problems than others overcoming the pressures of trading with real
money on the line, and while paper trading does not simulate this very well,
it still can help to "pretend" you're playing for real. The art of order
placing can only really be learned through experience as well, but one can
still have a rough idea of what would transpire by just viewing the market in
something. As far as technique is concerned, there really isn't any
difference - and in fact, good strategies are developed upon reflection and
testing anyway, and the paper trade allows one to (a) get a taste of how they
work in real time, and (b) get a feel of what it is like to handle the
decision making process while trades present themselves and while they are in
progress. If a system or approach is useless, though, it doesn't require
paper trading to disclose this.
Regards,
A.J.
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