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I think that paper-trading can be (the watchword is "can be") useful for
more than just identifying bad systems. I think it can 1) help identify
potentially good systems and 2) help ingrain good trading habits.
Many potentially dangerous fields use simulators to train people. Look at
both civil and military aviation. Having used civil aircraft simulators,
I can tell you that they definitely help make good practices a habit at a
far lower cost than actually gassing up the plane.
Unfortunately, I doubt many people use paper-trading in this way.
Larry Lewis
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