Just my 0.005, from my point view, paper trading should only be used to how one is familiar with entering orders, the filling of orders and how the market works. Paper trading for too long could result in overconfidence and just delude one to think the stock market is perfect.

If we observed in the US markets, you will know what I meant. The bid and ask spread is way bigger than our Bursa and the market makers may play or give leniency to a trader when matching orders. I am not saying it is bad or stay away from paper trades but that is how I see it.

Any other reason?

Getting familiar with the trading platform, ie entering orders etc etc...
Sorry but that's handbags in my opinion.

Paper trading for too long could result in overconfidence and just delude one to think the stock market is perfect.

I don't agree because I now believe that many have a misconception what paper trading is.

Paper trading is not about randomly paper trading the hot stocks.
Paper trading is for us to discover our strength and weakness in the stock market.
There are so many trading methods/ways.
For example: Wave trading, Breakout trading, Bottom up trading, Day trading, Scalping, Trend trading, Pattern tradings, momentum trading etc etc...
Out of so many methods, how do we know what's our best trading skill?
For example after paper trading for a period of time, we DISCOVER that our favorite day trading yields a 50% result and breakout trading yields a 65% result for us.
With that paper trading result, we can conclude that breakout trading is our best skill set...
so we formulate our market trading strategy based on our paper trading result.
Make sense so far?
It would be illogical if we do real trading as a day trader just because it's our favorite trading method, yes?
Instead should stick to breakout trading, yes?
That's our best skill set, so we use it.
Make sense again?

Now the question now is, how do we make this discovery that breakout trading is our best?

We have to TEST OUT our trading skills yes?

How are we going to test it out?

Test it out by trading with real money?
or test it out with fake trading?

This is how I would use paper trading.

And I really do not see how paper trading can be the source of over confidence.
There's nothing as 100% win record in paper trading.
I cannot achieve it.

Back to over confidence.
YES!
It's DEADLY and it's a source of where mistakes are make.
Sometimes BIG BIG mistakes for many.

There will be days when one wins BIG in the market.
After selling out the stock, trust me, the feeling is damn shiok-ka-lingam....
And one of the favorite songs to be heard ringing our ears is usually 'Believe it or not' ...
Unfortunately what happens next is impulse trading ( which basically trading on HOPE )...
and one would just buy the next stock due to over confidence...
ie. trading on HOPE...
and that's when one makes most mistakes.
It's a common mistake.
Those stock switching investors make it all the time.
They buy the next so-called available stock just because they have the 'extra' money in their portfolio (after selling out a winner)....
and these next-so-called available stock, if they look back in the future, they would realize, it's only a really average stock only.
I used invest cause perhaps it's best understandable (i think)...
Traders being overconfidence takes on the next trading just because it's an option (unfortunately it's never the best option)....

in short...

yeah... many have misconception what paper trading is all about.



This post has been edited by Boon3: Mar 21 2017, 09:50 AM

Fuyoh, that is some very long explanation, opinion here.

Very well written indeed. So okay, let us explain on the negatives of paper trading first, because sometimes we get out from the stock market or have yet to open the trading account with the brokerage house , can nevertheless attempt to do paper trading. From my standpoint, when conducting paper trading on the day itself, maybe a stock favoured by a trader is doing so well. And it comes back to various reasons such as, good corporate earnings, speculation to news, good progress on the development of companies etc. But when we enter with real money, problems begin to surface.

For this, let us to last Friday on OLYMPIA as an example. I paper traded around 13.5 within my imaginary mind. Not real money, fake. So the stock did very well right, on Monday, gilanya, it rose to 17.5, I entered another few thousand lots, once again, fake, flimsy, paper money. Wow, won a ton of fortune. Having amassed with delusion, being very high and greedy on the stock, I entered 19.5 today as at this posting, this time, real, hard, cash. I think it will hit 22 today, well, let us take a bet. As of this writing, 17.5. So, somewhere is wrong right? Stock or greed problem.

While I agree, to the above as you mentioned that we can test new methods out and pattern day trading (yes, in fact I am practicing NYSE/CBOE options before playing for real as a starter.), as traders, we need to test waters first before just jumping in. But what above that instinct one has, the willingness to jump in if one has "hope". Yes, the "hope" is really a dangerous word in the stock market world. It is akin to saying, "gambling ones wealth". This discussion would seem very fitting as Bursa continues to sky-rocket new records on trading volumes and gives similar flashbacks to 2014. It is something that everyone as to be wary of.

For ones information, I got scared of entering some of Bursa's currently mouthwatering shares that one's share would melt into one's mouth. Examples include DATAPREP, IWCITY and as mentioned OLYMPIA. Made a fortune, in a paper trading world but of course, if I gamble all now, real money, I will be a huge loser. So I do not know where it goes. But as mentioned before, paper trading is good for testing out strategies but not for a source of delusion and when one becomes delusional, that person's mind disappears into oblivion.

Whew, that is some one long post I have done in a long time.

while you guys debate on paper trading, the grown ups are making real money in stock market.

This post has been edited by lowya: Mar 21 2017, 10:54 AM

Good fingering exercise eh?

I do actually understand your point.

The thing about it or Olympia is, this is a straight punting like exercise done via paper/fake/imaginary trading.

When we trade, what we want to achieve, or rather what I want to achieve basically is REPETITION.
Yes, trading on hot penny stocks is one method which should be explored extensively on paper trading.
Who knows, this might be our skill set.
I know this uncle...
He trades every year just around the CNY period.
Sometimes a month before...
Sometimes during...
Sometimes before and after...
All depending on the market...
and he just punts...
the amazing thing is he can replicate his success each year.
Plain luck? or is there some skills involved with it.

He told me, he used to be a long term investor.
Did it many years but judging from the stocks he mentioned (like Sime la, DRB la etc, etc) I can understand why he did not have much success on it.
He has developed a good system on punting but he will never disclose his method. LOL.


Anyway, back to paper trading and punting ...

How do we know we are a good punter or not?
Should we take out real money and try?
If we make it... good.
If we fail... errr.... how much tuition fees can we afford to lose in punting?

Or should we maybe test it out extensively via paper trading?
Discover and develop our method...
How are we going to punt the stock?
Follow tips?
Follow spike in volumes in penny stocks?
Follow the chart?
etc etc....
there's just so many ways to punt...
If we fail... it's just time and effort (hey, make money also need to put in time and effort ma) ....we move on.

Back to Olympia example.
Won 2 days... with fake punting/day trade style...
and the 3rd day dived in with real money? WOW!

LOL! Yes I can imagine things like this would happen.
But I would blame the user.
That's reckless already lor.
From 13.5 sen... to 19.5 sen.... ?
Real money or not....
If it was me...
if I was paper trading to discover IF day trading on punting stocks is a method for me or not...
I would put the following remark on my 555 paper trading book...

'How many continuous days can I day trade on a same stock?'

That needs to be tested before diving in with real money.

I've said before, I'm not saying paper trade is not good. If it helps you succeed, good for you.
You obviously believe it is the best way to go, as can be seen from how strongly you feel and defend it.
Your advice to newbies to do it is welcome. I don't think many will do it like you have for years and years before they get into the real trading though.

That's funny lowya, given that this current discussion was pretty much started off by your post #246...

Some of my trades are real money. Just that in this time of time, I became so "rambang mata", do not know which stock to go or not to go. On Friday's Trading At Last session, I had to pick between Foundpac or Dataprep, I went to Foundpac instead. See what happen after that Friday. Susah like that to pick which is what.

And since we are in our fantasy, perfect world, hence paper trading. But nothing wrong discussing about that, some of us had to go back to the drawing board by paper trading.

Lol!

It's not how strong i defend it but what makes logical sense.

So you got any good reason why one should not paper trade?

Share la....

I got much free time these few days.

Lol. He was just trolling and yes, I fed the troll.


And for your info....
I still paper trade.
This is what I use to keep on improving.

yea funny how the debate started like page 1?

I think we all fed the troll.

But no matter, healthy discussions are always welcome around so all of us can improve.

Fingering exercises.

Not sure how many more times I must say, I did not say you must not paper trade. Please understand that.

I posted a link to an article in an earlier post about paper trading. Go read that. Got some comments at the bottom by users. As I always say, there is good and bad to everything. Pros and cons.

You have made it clear you don't think people should pay tuition fees, which can be avoided by paper trading first. Yes, good advice. If people want to take it, let them. If people don't want to listen, and they want to pay tuition fees, let them. It is not your responsibility. Unless they are your kids or something.

As I wrote, I used the word "current". Never mind lowya, not blaming you, just pointing out only.

Hahaha.... ok la ....i sitop here la.

That is one long explanation.



Btw, seeing these current warrants such as AMMEDIA WA shooting up by 100% makes me feel deeply disadvantaged that i dont have a crystal ball to be able to predict such price movements

I believe that if one wants to be good in the market...
One needs to possess the ability to ignore other peoples big winnings.

Cannot win everything one ma.....

Learn to let go.

Just concentrate on ourselves.

Agreed bro. But just thinking of the fact of missing the opportunity to make big just go by ain't fun