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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (8846)	6/11/2000 1:58:00 PM
From: Dominick	Read Replies (1) \| Respond to of 18137

Dan duchardt: The purpose of paper trading is to train your eyes through observation and develop your own trading system until you have full confidence in it. All noted in your journal. Then you move on to actual trading with 100 share lots to determine how you react to risk, reward and variables such as time lags, software, equipment etc. All noted in your journal. Then you develop strategies such as optimal time frames, attitude etc. to compensate for any deficiencies. And again all noted in your journal. Bada bing, bada boom, Dominick

To: Dan Duchardt who wrote (8846)	6/11/2000 2:23:00 PM
From: Jon Tara	Read Replies (1) \| Respond to of 18137

Dan, where can we trade with a $1 minimum commission? Please don't keept this to yourself!

To: Dan Duchardt who wrote (8846)	6/12/2000 12:11:00 AM
From: ig	Read Replies (1) \| Respond to of 18137

Forget Paper-Trading Speaking as one who has made million$ paper-trading, Dan, I agree with you: trading small and real is a better way to go, especially if you can get a break on commissions, such as the 60-days of $5 commissions offered by MBT for new account holders (300-shr max on the $5 trades, I believe). ig

To: Dan Duchardt who wrote (8846)	6/12/2000 4:32:00 PM
From: Dan Clark	Read Replies (3) \| Respond to of 18137

Dan, In general, I agree with your point about live trading in that there is no substitute for pulling the trigger, dealing with liquidity issues, knowing the real impact of late prints on you analysis, etc. Where I disagree slightly is... I believe it should be a three step process, not two. I.e., by implication, you are saying first trade small to start, then increase position size as the trader gets better. This assumes that the trader has chosen a strategy that CAN be successful. I think that it should be a three step process. The first step is paper trading, followed by your two steps. If a trader is a newbie, and hasn't developed a good trading plan, they will lose a significant amount of money just trading small. Commissions and slippage can eat up your account even with small positions. Just because a trader is successful with paper trading doesn't mean that they will be successful with live trading. But... If a trader has chosen a trading plan that is NOT successful while paper trading, they can't hope to succeed in live trading. I suggest testing each trading plan by paper trading. If successful, follow that with live trading small positions, followed by larger positions. Regards, Dan.