Papertrade to get confidence

...cont'd from yesterday...

One of the major benefits of papertrading is to learn to trust you system to the point of having enough confidence in it that when you Entry Signal appears, you actually follow through in placing an order pursuant to the system. This is especially important if your system is only right part of the time, as is the case with almost all systems. If you haven’t learned to trust your system and have confidence in it, you won’t take the next trade after several consecutive losses with they system. But if you’ve papertraded it often and have noticed that several consecutive losses are followed by BIG wins, then you’ll likely take the next trade.

Another major benefit of papertrading is to establish a standard against which to compare your personal live trading. Are you getting the same, worse, or better results than the results you get from papertrading. Make the comparison and find out what you’re doing differently. That will enable you to fine tune your trading technique beyond merely using the results of your actual trading by itself.

...cont'd tomorrow...

Website Home has MOVED to:
http://LeisurelyCashFlow.Googlepages.com

Copyright 2008 Raymond T. Lee. All rights reserved.
LeisurelyCashFlow
eMail me Comments