When paper trading, you’re dealing with real-time price-feeds and you have the same trading tools at your disposal as in live trading. ![]() Paper trading offers a unique way to learn trading without any monetary risks. ![]() There are many advantages to start trading on a demo account first before risking real money in the markets. Let’s first start with the main benefits of paper trading. Traders tend to underestimate profits and losses when they’re not real and don’t show the same degree of fear and greed that is otherwise present in live trading. Most experienced traders agree that a paper trading environment doesn’t provide the same emotional response as live trading. Unfortunately, there are also some major drawbacks when it comes to paper trading. You can learn how markets operate and how to place buy and sell orders on your trading platform, how to use stop-loss and take-profit orders, how to draw trendlines and identify support and resistance level on real-time price feeds, but also how to develop a profitable trading strategy and manage your open trades. Paper trading comes with indisputable advantages for newbie traders as it offers an easy and risk-free way to get your feet wet in trading. Beginner traders usually start trading with a paper account first before depositing real funds and opening a live trading account. The majority of brokers offer paper trading accounts, popularly known as demo accounts, to their existing and prospective clients. Develop into a well informed, confident private trader, take our premium course: Trading Foundations Programme.
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