Dan,
Regarding paper trading, perhaps I should clarify. To me, paper trading means using a simulator and tracking your results as if you were live trading. I use CyberX for order entry. It records the results of your trades. At the end of the day, you copy the results from CyberX to an Excel spreadsheet, print it out and stick it in a notebook. This works in simulator mode or real mode.
The key is capturing, tracking and evaluating the results. Make X numbers of trades at Y profit(loss) per trade for Z average profit(loss) per trade. Black and white. Strategy works or doesn't.
If the trading strategy is successful on "paper", then start live. If it doesn't work on paper, it will fail badly in real life.
I agree with you that traders may develop bad habits while paper trading. However, these same people will FAIL when live trading. If they haven't the discipline to record their losses when paper trading, they probably lack the discipline to trade well.
All of this is IMO, of course. <g>
Good trading,
Dan. |
