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Paper Trading

We speak to hundreds of people per month, many with years of trading experience and many who are aspiring to be traders. In any case, quite often we hear them say, “I have been trading a demo account for the last year, and I have returned 40% so far”, “I am ready to trade and I want you guys to back me based on my track record”.

We can appreciate the fact that many people aspire to be traders’, yet, these people are either under funded to open an account or they just fear the reality of losing any of their money. In any case, Demo trading is worthless! It is great to get the look and feel of the software platform, however, trading and making money on a demo DOES NOT translate in success in the real world of trading.  There are many reasons why this is the case. Some demos are in fact not even real time quotes. The Sterling Trader Pro platform that we use does have real time quotes, however, if you place an order you are going to get “filled” whereever you place the order. In real live trading, the market moves fast and in many cases you may never get filled on an order that you placed.  Also, when trading a demo, you can trade 10k shares of GOOG, RIMM, AAPL, etc and have no fear because their is no money, and no emotions on the line.

If you are one of these individuls, trading a demo and analyzing your trading successs by this measure, STOP! Open a live account and start with 100 shares of a few slow moving stocks and test your trading plan or call us to find out how you can trade our capital.  But either way, don’t waste another minute on a demo account and start real live trading, it truly is the only guage to determine your success!

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