Paper trading in TradingView is an excellent way of practicing on trading without actually using our real cash. So with the aid of trading view paper trading we can get the feeling of investing and trading in the market with out any financial losses. It also assists us to monitor and cross check our profit and loss in real time as it records all the buying and selling order done by us. If we follow with discipline it will enable us to check whether our strategy is fruitful or not since it will assist to determine whether our strategy is profitable or not. It is as follow: Paper trading to start we need to have an account in trading view. We will begin our account with a $100,000 credit and we can also reset this credit as we wish to without making actual money transactions.
This post covers what paper trading is :
Paper Trading enables one to trade using paper money just like he or she would do when using real money. Yes, it is not mandatory to lay your real cash on the line to play the games. Lets you test your trading models concerning Relative Strength Index (RSI), Bollinger Bands and others, whether they work for live trading without using your real money. With paper trading, we can also learn more about the market and start gaining our confidence in trading.
Getting Started
Step 1: Join TradingView for Free and Login, Sign up at first.
The first step is to sign up for TradingView if you did not sign up already for the trading platform. A TradingView account is necessary to view and resume your registration once completed, go to your account.
Step 2: Open the Paper Trading Panel
- It will also allow you to be able to engage in paper trading with stocks, gold, silver, futures, and many others using TradingView.
- For instance, if we decide to invest on a cryptocurrency, an example is the Bitcoin. Now return to your screen and scroll down a little at the bottom it will say ‘Trading Panel.’ Click on it.
- From the options provided from where, select ‘Paper Trading’ and then click on ‘Connect’, Image is given below.
- In order to take part in the simulation the learners have to utilize the Paper Trading Interface.
Step 3: Check out the trading paper choices
As soon as it get connected you will get different options there are Position, Order, History and other options. Thanks to these option, it will assist you in tracking the trades and assessing the particular strategy you are willing to examine.
Step 4: Place a Trade
- Now, let us not buy a stock in order to practice.
- For instance select for instance ‘Bitcoin’ in which you want to trade and then place a ‘buy’ order, Image is given in below thread.
- The price of the stock will be in US Dollar. As it will be seen, TradingView uses USD for paper trading , this will remain as it is because by default USD price will be shown there..
Step 5: Sell the Stock
- To sell the stock/crypto you have to right click on the position of your choice that you want to sell.
- There are buttons that enable a trader to close the trade either partly or completely. Choose your option and then verify.
Step 6: Analyze Your Results
- Once again, conduct the buying and selling of stocks as dictated by your plan whether it is the RSI or the Bollinger Bands and so forth.
- One thing you should try to do is ensure that your trades are profitable for the long term, to ensure that a winning strategy is adopted.
- If your setup is working, and you’re making profits then you can easily join real money for trading.
Conclusion
Paper trading has one advantage that let the trader practice and hone his or her system (RSI/price action/moving average etc) without risking actual capital. In other words, one should not hurry at the time of the evaluation of market behavior and make certain alterations.