If you want to get involved in the world of trading, paper trading is a great way to start off! For those who are unaware, paper trading involves simulated trades, which enable an investor to practice selling and buying without real money being risked. The term “paper trading” dates back to a time whereby those who wanted to become traders would practice on paper before they risked money in live markets.
Practice with paper trading
While you are learning, you will record all of the trades so you can keep track of the losses, profits, portfolios, and hypothetical trading positions. This will help to make sure that you are more prepared when the time comes to trade with your own funds. Today, a lot of the practice trading incorporates using an electronic stock market simulator, which feels and appears like a genuine trading platform.
What are the benefits of paper trading?
There are a number of different benefits associated with paper trading. Here are the top benefits:
- You will get to practice every part of the trading process.
- You practice in a relaxed environment without putting your own money at risk.
- This can also give you confidence in your ability.
- If you make mistakes, you can keep practicing until you feel like you are ready.
- Paper trading gives you the ability to test out new strategies and try different things.
- With no stress and no risk, it makes sense to try out your investing thoughts and strategies with paper money rather than diving right in and risking your own money.
However, you do need to be disciplined; only make the moves you would on a real platform so you can be sure you’re truly testing your efforts.
You can paper trade for free on thinkorswim
One trade platform that comes with the option of paper trading is thinkorswim. Thinkorswim has a great reputation in the industry for being one of the best electronic trading platforms, and so it is certainly ideal to start off here when it comes to your trading efforts.
How do you paper trade on thinkorswim?
It is really easy to get started with paper trading on Thinkorswim. Should you already have a TD Ameritrade account, you will automatically be registered for their paperMoney option, which enables you to practice trading immediately. So, all you would need to do is log-in and download the platform.
If you do not have a TD Ameritrade account, don’t worry; you can still try your hand at paper trading. You will simply need to register, which includes filling in your details to set-up your paperMoney account. It is not a complicated process, so you should be able to get started pretty quickly!
So there you have it; an insight into paper trading with the Thinkorswim platform. We hope that this has helped you to get a better understanding of how you can effectively practice your trades before you commit any of your real funds. This is something that is recommended for anyone who is looking to get a foot into the world of trading.
Want to trade paper money risk-free? Click here to learn more.