Glossary · Risk & Strategy
Paper trading
Practicing trades with simulated money.
Paper trading (also called sim or demo trading) lets you place orders with virtual cash so you can practice mechanics, test strategies, and build habits without risking real money.
It is one of the best ways for beginners to learn order types, watches, and journaling. The main caveat: emotions feel lighter without real capital, so treat paper results as practice — then keep the same rules if you eventually go live.
Example
You open a simulator, fund it with $50,000 in fake cash, buy an ETF with a limit order, set a stop-loss, and journal whether you followed your checklist.