attach_money Paper Trading Guide

infoOverview

Paper Trading is a risk-free simulation that lets you practice trading strategies with virtual money. Track your performance, build confidence, and refine your approach before risking real capital.

Why Paper Trade?

• Zero Risk: Practice with $100,000 virtual dollars
• Real Market Data: Trade using actual stock prices
• Build Confidence: Test strategies before going live
• Track Performance: Monitor wins, losses, and metrics
• Learn from Mistakes: Make errors without financial consequences
• Test New Strategies: Experiment risk-free

play_arrowGetting Started

Opening Your First Paper Trade

1. Navigate to the Paper Trading tab
2. Click "Open New Position"
3. Enter the stock ticker (e.g., AAPL, TSLA)
4. Specify number of shares
5. Set entry price (current market price is default)
6. Set stop-loss level (optional but recommended)
7. Set target price (optional)
8. Add notes about your trade thesis
9. Click "Open Position"

Opening Trades from Scanner

The fastest way to paper trade scanner results:

1. Run a stock scan
2. Click "Paper Trade" on any result
3. Trading form pre-fills with stock details
4. Adjust shares, stop-loss, and targets
5. Click "Open Position"

Opening Trades from Watchlist

1. Go to your Favorites/Watchlist
2. Click "Trade" button next to any stock
3. Form opens with current price
4. Enter your position details
5. Open the trade

show_chartManaging Open Positions

Viewing Open Positions

Your Paper Trading Dashboard shows all open positions with:

• Ticker Symbol: Stock you're trading
• Shares: Position size
• Entry Price: Price you entered at
• Current Price: Live market price
• Unrealized P/L: Current profit or loss
• Unrealized P/L %: Percentage gain/loss
• Days Held: How long you've held the position
• Stop Loss: Your risk management level
• Target: Your profit target

Color Coding

• Green: Position is profitable
• Red: Position is losing money
• Gray: Break-even or very small move

Editing Positions

You can update your stop-loss and target prices:

1. Click "Edit" on an open position
2. Update stop-loss or target price
3. Add or update notes
4. Save changes

closeClosing Positions

Manual Close

1. Click "Close Position" on any open trade
2. Confirm the exit price (defaults to current market price)
3. Add closing notes (optional)
4. Click "Confirm Close"

Automatic Closes

Positions close automatically when:

• Stop-Loss Hit: Price drops to your stop level (limits losses)
• Target Hit: Price reaches your profit target (locks in gains)

historyTrade History

Viewing Closed Trades

Your trade history shows all closed positions including:

• Ticker & Dates: What you traded and when
• Entry & Exit Prices: Where you bought and sold
• Realized P/L: Actual profit or loss
• Realized P/L %: Percentage return
• Win/Loss: Whether trade was profitable
• Days Held: Trade duration
• Target Hit: Did you reach profit target?
• Stop Hit: Did you hit stop-loss?

Learning from History

Review your closed trades to identify patterns:

• Which strategies work best for you?
• Are you cutting winners too early?
• Are you holding losers too long?
• Do you follow your stop-losses?
• What's your average win vs average loss?

analyticsPerformance Metrics

Key Performance Indicators (KPIs)

Track these important metrics on your dashboard:

Portfolio Metrics

• Starting Balance: $100,000 initial capital
• Current Balance: Your total account value
• Total P/L: Overall profit or loss in dollars
• Total P/L %: Percentage return on your account

Trade Statistics

• Total Trades: Number of positions closed
• Winning Trades: Number of profitable trades
• Losing Trades: Number of unprofitable trades
• Win Rate: Percentage of winning trades

Risk Metrics

• Average Win: Average profit per winning trade
• Average Loss: Average loss per losing trade
• Largest Win: Your biggest winning trade
• Largest Loss: Your biggest losing trade
• Risk/Reward Ratio: Avg Win ÷ Avg Loss

Understanding Win Rate

A good win rate depends on your strategy:

• 60%+ Win Rate: Excellent! Your system is working
• 50-60% Win Rate: Good, especially if avg win > avg loss
• 40-50% Win Rate: Acceptable IF your avg win is 2x your avg loss
• Below 40%: Review and adjust your strategy

account_balanceLoan Request System

If your paper trading balance reaches $0, you can request a virtual loan to continue practicing.

Requesting a Loan

1. When balance hits $0, loan request section appears
2. Click "Request Loan"
3. Enter loan amount ($1,000 - $50,000)
4. Choose repayment term (30-365 days)
5. Add reason for loan (optional)
6. Submit request
7. Admin reviews and approves/denies

Loan Terms

• Amount: $1,000 to $50,000
• Repayment: 30 to 365 days
• Interest: None! It's virtual money for practice
• Purpose: Continue learning and practicing

Viewing Loan Status

1. Click "View My Loan Requests"
2. See all past requests with status:
3. Pending: Under review
4. Approved: Loan granted, funds added
5. Denied: Request declined with reason

schoolBest Practices

1. Treat It Like Real Money

The biggest mistake in paper trading is being too reckless because "it's not real." Practice good habits:

• Use proper position sizing (1-5% of portfolio per trade)
• Always set stop-losses
• Follow your trading plan
• Track and journal every trade
• Feel the emotional impact of wins and losses

2. Start Small, Scale Up

• Begin with small positions to learn the system
• Gradually increase size as you gain confidence
• Don't risk more than 2% on any single trade
• Diversify across 5-10 positions max

3. Test Specific Strategies

Use paper trading to validate strategies:

• Test breakout strategies on high momentum stocks
• Practice reversal trades on oversold stocks
• Experiment with different entry/exit rules
• Track which timeframes work best for you

4. Journal Your Trades

Use the notes field to document:

• Entry: Why did you enter this trade?
• During: How does it feel? Tempted to close early?
• Exit: Why did you close? Did you follow your plan?
• Lesson: What did you learn?

5. Review Weekly

Set aside time each week to review:

• Your win rate and P/L trends
• Which strategies are working
• Common mistakes you're making
• Areas for improvement

tips_and_updatesPro Tips

Position Sizing

Calculate proper position size:

1. Decide risk per trade (e.g., $1,000 = 1% of $100k)
2. Calculate risk per share (entry price - stop loss)
3. Divide risk by risk per share = number of shares

Example: Entry $50, Stop $48, Risk $1,000

Position size = $1,000 ÷ ($50 - $48) = $1,000 ÷ $2 = 500 shares

The 1% Rule

Never risk more than 1-2% of your account on a single trade:

• $100,000 account × 1% = $1,000 max risk per trade
• Even with 10 losses in a row, you'd only lose 10%
• Protects your capital for future opportunities

Risk/Reward Targeting

Only take trades with favorable risk/reward:

• Minimum 2:1: Risk $100 to make $200
• Ideal 3:1 or better: Risk $100 to make $300+
• Calculate before entering: (Target - Entry) ÷ (Entry - Stop)

Scaling In and Out

Advanced technique to optimize entries and exits:

• Scale In: Buy 1/3 at entry, 1/3 on dip, 1/3 on confirmation
• Scale Out: Sell 1/3 at target 1, 1/3 at target 2, let 1/3 run
• Reduces average cost, maximizes winners

error_outlineCommon Mistakes to Avoid

1. Overtrading

• Don't trade just to trade
• Wait for high-quality setups
• Quality over quantity
• Patience is a skill

2. Ignoring Stop-Losses

• Always set stops before entering
• Honor your stops (don't move them lower)
• Small losses are part of trading
• Protect capital for next opportunity

3. Revenge Trading

• Don't try to "get back" after a loss
• Take a break after 2-3 losses in a row
• Emotional trading leads to bigger losses
• Stick to your trading plan

4. Holding Losers Too Long

• Cut losses quickly when thesis is wrong
• Don't hope for a recovery
• Capital preservation is key
• Move on to next opportunity

5. Taking Profits Too Early

• Let winners run to target
• Don't take profits out of fear
• Use trailing stops instead
• Average win should be bigger than average loss

trending_upTransitioning to Real Trading

Are You Ready?

Consider real trading when you've achieved:

• ✅ 3+ months of consistent paper trading
• ✅ Positive total P/L over that period
• ✅ Win rate above 50% OR great risk/reward ratio
• ✅ Emotional control (not chasing or panicking)
• ✅ Documented trading plan
• ✅ Understanding of risk management

Starting Small

When transitioning to real money:

• Start with $500-$1,000 (money you can afford to lose)
• Use same strategies that worked in paper trading
• Trade even smaller sizes than paper (real emotions are different)
• Track every trade and continue journaling
• Expect to feel nervous - that's normal
• Don't increase size until consistently profitable