What is Paper Trading?
If you understand simulators in the real world, you will easily understand what paper trading is.
A simulator creates a pseudo environment for an actual activity so that one can learn, make mistakes, and correct them before entering into real activity.
Paper trading in the options trading context allows users to take simulated trades which may involve buying & selling options contracts without using actual money.
As a domain itself, options trading and financial markets are quite vast; gaining mastery and learning these skills takes enough time and practice.
Options trading as an activity is both time and money intensive. Especially the new learners who are entering this domain would find it challenging to do hands-on learning as money is an active element in this process, but with paper trading or virtual trading, options trading learners can get a real-market-like trading experience without the need for real capital.
Benefits of Paper Trading
- Learn in a risk-free zone
- Boosts Confidence
- Practise anytime, anywhere
- Master Discipline & Psychology
Now that the concept of paper trading or virtual trading is clear, here are the 4 main benefits of paper trading in a simulator-like environment through any paper trading app:
1. Learn in a risk-free zone
This is one of the major benefits for naive/ new users who are about to begin their learning journey. Since you are trading in a simulated environment using the paper trading app, you would focus more on learning the skill rather than worrying about the financial outcomes.
2. Boosts Confidence
Since paper trading apps provide you with a real market-like environment, the decisions you make in terms of buying/ selling stocks/ options and the corresponding results it fetches, help you build your confidence.
3. Practise anytime, anywhere
Gives you the freedom to practise options trading even after market hours which is very beneficial. Only a few paper trading apps have this offering and Stolo.in is one among them.
4. Master Discipline & Psychology
It’s a commonly known fact that discipline and psychology play an important role in the options trading journey. Many begin the journey without being able to master these skills in their live trading sessions. Practising through an app helps you wire your brain to ingrain these habits which can make you a better trader.
In Stolo, the paper trading app is very close to the real market set up, and we have done so to ensure our users get to learn the skill right. It’s designed in a way that, it can cater to beginners as well as experts.
Here’s a video of the Ultimate Paper Trading App in action: