The basics of paper trading
Learn how zero-investment trading takes over in 2022
A Beginner’s Guide to paper trading
Most traders will agree: becoming successful in trading is just like training a muscle. There is no such thing as a ‘born trader’ – great results depend primarily on your strategy, motivation and, above all – winner’s mentality.
This article will briefly discuss the benefits of regular trading practice for both newbies and pro traders that you can get by participating in free paper trading tournaments and learn how our virtual competitions can help you step up your game and become a better version of your trading self in the long run.
Paper trading, in simple words
Paper trading refers to games where simulated trades allow independent investors to practice buying and selling of financial instruments on the global market without risking real money.
According to Investopedia, The term dates back to a time before the digitalisation of trading platforms when aspiring traders would practice on paper before risking money in live markets.
Paper trading allows new traders to learn and improve their trading with the use of electronic stock market simulators, which look and feel like real trading platforms.
The rise of online trading
In recent times, the global trading industry has developed many digital innovations that allow individual investors to enjoy greater freedom in managing their resources online. According to recent research, 15% of all investors on the market today have started trading for the first time during the pandemic in 2020, and this new wave of traders has become known as ‘the generation of online investors’.
According to a new report, the size of the global online trading market is about 8,28 billion USD, while there are currently around 13,9 million online investors across the globe – or one in every 561 people. As a result, the rising interest in online trading has created new business models, introducing digital trading platforms, accessible without fees and commissions.
The issue, however, is, that one still needs substantial amounts of investments to get profitable on the market, which can either be risky or impossible for people with certain economic restrictions. Therefore, a new revolutionary concept has just made entering world markets possible for everyone on the planet.
Earning from free paper trading tournaments
Today, we see the rise of businesses that allow market participants to enter the financial industry with zero starting capital. Some of them are free trading tournament providers that give traders the possibility to generate substantial income and develop their trading skills only thanks to their talent and passion for economics.
These new digital platforms allow individual investors to join different trading games for free with no starting capital. Typically, these are real-time competitions between traders that use virtual funds and battle for real cash prize pools. This way, trading is gradually transforming into an exciting esport, similar to the gaming industry, where everyone can learn, trade and profit from paper trading while having fun in the process.
5 ways to improve your trading skills by paper trading
Participating in free trading games can be your contribution to the democratisaton of capital markets worldwide. If you are considering the option to invest with no risks and
earn from paper trading, here is a list of 5 things you can consider before joining a free paper trading game.
With paper trading, you learn how to trade in a risk-free environment
Self-discipline, patience, and continuous learning are the most potent weapons in any trader’s arsenal. They are essential for beginners who should never rush to
trade live – otherwise, they risk losing hard-earned money because they lack the patience for proper trading practice. If you are new to the trading craft, you better save your funds while testing your strategy and proving yourself to be profitable by paper trading.
You might win real and win big!
Some paper trading tournaments offer hard-to-ignore real cash prizes, which you can use to grow your funds. If you decide to fully dedicate yourself to playtrading and join multiple competitions, you can even make a decent monthly income out of it.
That is why you could expect good competition, as participants take these games seriously and play for the win. However, competing with others in a motivating environment gives you a special kind of thrill – one that turns trading into a compelling experience, no matter if you win a prize or not.
You get a chance to learn from the best
For both beginners and experienced traders, participating in paper trading games is a social event and a unique opportunity to create their own professional circle. What’s more, sometimes tournaments feature masterclasses and expert tips and tricks by renowned pros who can guide you along the way. Those contacts help you build a personal, selected network of like-minded individuals and even help you find some trading friends for life.
You get a taste of trading psychology
One of the most important aspects of paper trading is to give you a risk-free trading environment where you can learn about self-control and rational reasoning. It is an invaluable tool to teach you about trading mechanics and boost your self-confidence minus the emotional mix-up involved in real-life trading.
Last but not least – you earn your bragging rights
And finally – winning a paper trading tournament can be a great source of inspiration, enhancing your trading performance and motivation in the long run. Besides the cash prize, you will claim your trading star fame and prove your versatility as someone who can quickly react, adapt and overcome challenges on his way to victory.
Free paper trading games offer an alternative to traditional trading that can also help you achieve greater financial freedom. The lack of investments needed, the esport nature of the experience and the real-time communication with other traders is what makes the concept so enticing for the young gen Zs and beyond.
The main idea of free paper trading tournaments is that capital markets should be accessible for everyone, regardless of their financial situation, geographical location or upbringing, securing equal start to all investors who want to improve their trading skills. This is a revolutionary approach facilitated by technology and current digital advancements, which supports democracy and minimises barriers to the world of finance. And democracy generally means progress – don’t you agree?