What is Paper Trading
Paper trading is a way for you to practice your stock trading skills without actually risking any real money. There are many ways that you can use to paper trade. One way is to paper trade manually meaning you pick a stock and take notes and see how your stock performs on your own. Another way is to use a virtual trading platform that many stock brokers (OptionHouse has a very nice virtual trading platform that is exactly the same as their real trading platform) offer where you trade with virtual money. The second way is the prefer way to practice because it feels like real trading where you will be able to set stop loss and limit orders.
Practice your trading skills
You can also practice your stock picking and technical analysis skills using Dojispace Stock Training Tool. The stock training tool allows you to test your technical analysis skills against real historical stock market data. The tool generates a random stock chart from the past year and you can analyze the chart and decide if you want to buy or sell the stock. Click here to check out the tool.
Find stocks to paper trade
You can find stocks to paper trade using Dojispace Stock Screener where you are able to screen for the patterns that you like and see how the stocks work out. In addition to the Stock Screener, you can also try the Intraday Screener. The Intraday Screener uses an advanced technology to filter out stocks and automatically return the stocks that are bullish or bearish. You can pick a few stocks from the Intraday Screener and follow the stocks for a few days and see how they perform.
Why should you paper trade?
Paper trade is a very good way for beginners to learn stock trading without losing any money. In my opinion, all beginners should spend at least one month paper trading before start trading with real money.
