Paper Trading Accounts
Paper trading is not something that should be taken lightly. Rather, this process should be treated with just as much care and respect as normal trading should. For those who don’t know, paper trading is the term that describes trading with practice accounts. Most brokers offer these practice accounts and you should always use them. Whether you are completely new to Forex trading or you are just switching brokers, paper trading has much to offer you.
If you are a new Forex trader, the reason for paper trading is obvious: you simply don’t have the experience to apply to real life trading. Even if you have been observing the currency market for months, trading with real money is tough. Get all the practice you can so that when you are trading real money, it feels like a second nature to you.
Experienced traders should also utilize paper trading when using Tom’s EA. This is especially true when switching brokers or testing out an additional, but new, broker. You want to be very familiar with the software that you are using so you can’t make a mistake in your trading due to a lack of experience with the new trading platform. Testing out new techniques should also go the paper trading route at first. You want to make sure that your new strategies are effective prior to risking real money on them. The more you practice, the better you will get. Paper trading gives you a risk-free method of getting this practice in under your belt.