Welcome back. In this article we will discuss about paper trading or virtual trading. So when you search on google most traders lose money, you will be quite surprised to see that 95% of the people doing day trading end up losing money. Also 80% of the day traders lose their money over the course of a year with a median loss of 36.3%. Wow I mean 36.3%. That’s like you are planning to invest let’s say 10 lakh, and you decide to give 3.6 lakh as the commission itself. Now that sounds like a big amount right? But seriously, the fact that 95% of the people have such a big loss needs to be reduced. Not just that people think that trading is an easy way of earning money based on the fancy videos you see on youtube. Clearly the data says the opposite.

paper tading

Now if you see this chart here, 40% of the people trade only for 1 month. 80% quit within the first 2 years. Now I’m not here to tell you how to do day trading. There are much more experienced traders online that can show you that. What I do want to tell you is about paper trading and 4 websites, where you can learn and execute trades without using your actual money. Let’s get into it. So we are going to discuss paper trading or simulation trading, whatever you want to call it. So for those of you, who are not aware of what paper trading is, it’s a platform which allows you to gain access to the entire market,whether it NSE, BSE, or the US stock exchange you name it. It will allow you to get access to those markets in real time, but you don’t have to invest or spend even 1 Rs. So if you ever wanted to get started in investing in the stock market, this can be a great way to learn as its as it’s completely free.

Now the stock market in a very simple way, is like if you are losing money, it’s because someone else has traded smarter than you,and they have taken your money. Now People end up losing because they either start trading based on the hot advises they see on media or from their friends, or they get lucky when they make that first trade and get a decent profit and think they know it all, so they go all in, and end up losing big amount of money because at that time they pretty much gambling or they just try to copy other people’s trades.

In the long term you won’t be able to sustain yourself using these techniques. So what a paper trading website allows you to do is, whatever you have learnt whether it’s on youtube, or maybe a course, or books,you get to test it, in the real market, without actually using your own money. Now, these websites are free, but they do have certain limitations.

So in simple ways, 3 reasons why you should start with this.

1. No monetary risk. You get to execute all your learnings for free.

2. You don’t have to open a Demat account or go through the entire documentation process. You just need to make a simple paper trading account. Just a quick tip, when you start on these websites with fake money, treat it as real money itself. If in a real account you are going to start with maybe 1 lakh Rs, follow the same.

Your paper trading account might have 10 lakh or 20 lakh or even 1 crore, and people try using all of it, because it’s fake money. Treat this as real money to actually understand how well you are performing and how much loss are you making.

Monebhai

So at the 4th place, you have moneybhai which is controlled by money control. It’s a free platform and it’s one of the biggest virtual trading platform in India. You start with 1 crore in your account. Good part of this website is that you get to learn how to invest in stocks, commodities, fixed deposits, or even mutual funds. The downside is that this website doesn’t allow you to analyze charts properly. So you don’t have many options to understand charts.

Marketwatch virtual stock exchange

At 3rd place, you have a marketwatch virtual stock exchange. This is more like a mini game, where you can either create a contest or you can participate in multiple contests. Again, it’s a decent website to start off with. Downside of this website is that they made it little bit more like a game, with all the contests and everything. you don’t get the feel of a day trader or swing trader as such.

Chart mantra

At 2nd spot, you have a chart mantra. This is backed by economic times. What I like about this website is that it focuses more on technical analysis, so you are able to develop more knowledge around analysing patterns and charts. When you start on this website, you get 1 lakh Rs in your account to start with. What I also like about this website is that it lets you pick 1 stock, and then you have to keep analyzing the same stock again and again. So you get to invest in that one stock. Because of that, you get a deeper understanding of how the stock performs, what the market depth of that stock is , how volatile that stock is and at the end of the day, you get to check how much profit or loss you made from that 1 company stock.

Trading view

At the 1st place, would be my personal fav, trading view. This is a platform which I personally use all the time. It’s a very simple platform. It lets you analyze stocks on a real time basis, without any delay. It has a free and premium version. Free version is more than sufficient in my opinion. It allows you to use 3 indicators when you are using the free version and around 15 indicators when you are using the pro version. Downside of this website is that the free version has multiple ads which pop up at the side of the screen. Does bother a little bit, but not a big concern as such. You can use these websites to spot trends,draw support and resistance lines, recognizing candlestick patterns , just sit around and keep trading, figuring out the patterns with 0 risk.

You end up learning so much. You learn how to trade better, or how to recognize various patterns which you saw on youtube. Also, Other than the platforms which I just mentioned, if you have any other good platforms, make sure to comment down below for the other users as well. I do hope you guys understood what simulation trading is, and which website to use for simulation or paper trading and if you did get value from this article would be great if you can share it. I think it can be a great time to learn and understand how to trade if you are a complete beginner.