Important Reminder
Paper trading is practice with fake money. It's essential for learning, but it cannot fully replicate the emotional pressure of real trading. Always practice extensively before considering real money. Never trade with funds you cannot afford to lose.
What You'll Learn in This Final Lesson
- Understand what paper trading is and why it's essential for every beginner
- Activate paper trading on TradingView and place your first practice trade
- Learn how to keep a trading journal—your most powerful learning tool
- Know how many paper trades to complete before considering real money
- Build disciplined trading habits that will protect you later
Introduction: Theory Meets Practice
Welcome to the final lesson of Chapter 5! You've come so far. You've set up TradingView, learned to read candlesticks, added your five essential indicators, and built a 7-step checklist for analyzing charts. You now have all the tools and knowledge you need to start practicing.
But here's the thing: reading about trading and actually doing it are completely different.
You can read a book about swimming and understand the theory perfectly—how to kick, how to breathe, how to move your arms. But until you get in the water and actually try it, you won't really know how to swim.
Trading is the same way. That's why this lesson is so important. We're going to teach you how to practice trading without risking any real money. This is called paper trading (also known as demo trading or simulated trading), and it's how every smart trader starts their journey.
Section 1: What Is Paper Trading?
Definition
Paper trading (also called demo trading or simulated trading) means you place trades using fake money, but the charts and price movements are real.
You're trading in a real market environment—watching real candlesticks form, real indicators moving, real volume bars changing—but the money in your account is pretend. If you win, you don't get real profit. If you lose, you don't lose real money.
It's like a flight simulator for pilots. The cockpit looks real, the instruments work, the plane responds to your controls—but if you crash, nobody gets hurt. You just reset and try again.
Why Paper Trade? Four Powerful Benefits
Learn Without Risk
Make mistakes and learn from them without losing real money. A mistake costs you nothing except a lesson. When you trade with real money, a mistake can cost you hundreds or thousands of pesos.
Build Confidence
Practice your checklist, test your ideas, and see how markets move in real time. As you place more paper trades, you'll feel comfortable navigating the platform and making decisions.
Develop Discipline
Journaling your paper trades teaches you to think before you act. It forces you to have a plan for every trade—entry, stop loss, target, and reasoning. This discipline separates profitable traders from gamblers.
Prove Your Process
If you can't be profitable on paper, you won't be profitable with real money. Paper trading lets you prove to yourself that your process works before you risk anything real.
Critical Mindset: Paper Trading Is NOT a Game
Yes, the money is fake. But you need to treat it like it's real. If you treat paper trading like a game—taking random trades, ignoring your stop losses, placing 20 trades a day just because you can—then you're building terrible habits that will destroy you when you switch to real money. Treat every paper trade like it's real. Follow your plan. Respect your stop loss ideas. Journal every trade.
Section 2: How to Activate Paper Trading on TradingView
TradingView makes paper trading easy and accessible. Let's walk through the activation process step by step.
Open any chart on TradingView (for example, EURUSD or BTCUSDT).
Look at the bottom of your screen. You should see a section called the Trading Panel. If you don't see it, click the Trading Panel button (usually at bottom-right or in the toolbar).
In the Trading Panel, look for a tab or button that says Paper Trading.
Click Connect or Activate to turn on your simulated account. That's it! You're now connected to paper trading.
What You'll See
Once paper trading is activated, you'll see a fake account balance displayed in the Trading Panel. By default, TradingView usually gives you $100,000 USD in fake money to start with.
You'll also see tabs for:
- Orders (any pending orders you've placed)
- Positions (any active trades you currently have open)
- History (your past closed trades)
Treat It Like Real Money
Don't treat this $100,000 like Monopoly money. Pretend it's your real savings. Set rules: Risk no more than 0.5% to 1% of your account per trade. If you have ₱100,000, risk only ₱500 to ₱1,000 per trade. This teaches you to think small, manage risk carefully, and compound profits over time—just like professional traders do.
Section 3: How to Place a Paper Trade
Now let's learn how to actually place a paper trade on TradingView.
Use your 7-step checklist to analyze the chart. Decide whether you want to Buy (go long) or Sell (go short).
Right-click on the chart at the price level where you want to enter. A menu will appear. Select Buy or Sell. Alternatively, use the Order Ticket in the Trading Panel.
Enter the quantity (number of units, lots, or contracts). Keep your position size small. Make sure your risk per trade is no more than 0.5%–1% of your account.
Click Submit Order or Place Order. Your trade is now live! You'll see it in the Positions tab.
What You'll See in Your Position
- Entry Price: The price where you entered
- Current Price: The live market price right now
- P/L (Profit/Loss): How much you're currently winning or losing (updates in real time)
- Unrealized Gain/Loss: Your profit or loss in dollars or percentage
Closing the Trade
When you're ready to close:
- Option 1: Right-click on your position in the Positions tab and select Close Position
- Option 2: Use the Order Ticket to place an opposite order
Section 4: Why Journaling Is Critical
Here's a secret most beginners don't realize:
Journaling is more important than the trades themselves.
Why? Because trading is not about winning every single trade. It's about learning, improving, and developing a process that works over time. And the only way to do that is to keep a detailed record of what you did, why you did it, and what happened.
Four Powerful Benefits of Journaling
1. Spot Patterns
After 20 trades, you'll start to see patterns. Maybe you're really good at spotting uptrends but struggle with downtrends. Without a journal, these patterns are invisible.
2. Learn From Mistakes
You'll catch bad habits before they become expensive. Maybe you keep chasing price after breakouts instead of waiting for pullbacks. If you catch them on paper, you can fix them before real money.
3. Build Confidence
When you review your journal and see progress—your win rate improving, your reasons getting clearer—you'll trust your process more. Confidence comes from proof, not hope.
4. Review Objectively
Emotions fade after a trade. Your journal is a permanent, objective record. When you review it a week later, you can see the trade clearly without emotional noise. This is where real learning happens.
The Brutal Truth
Most beginners skip journaling. They think it's boring or unnecessary. Don't be one of them. Without a journal, you're just guessing. You have no idea what's working and what's not. You're flying blind. With a journal, you're learning. You're building a track record. You're becoming a better trader with every single trade.
Section 5: How to Journal a Paper Trade (Simple Template)
Let's make journaling as simple as possible. You can use Google Sheets (recommended), Excel, or even a physical notebook.
Journal Template Fields
| Field | What to Write |
|---|---|
| Date | The date you placed the trade |
| Pair | EURUSD, BTCUSDT, GBPJPY, etc. |
| Timeframe (TF) | 1H, 4H, D, etc. |
| Direction | Buy or Sell |
| Entry | The price where you entered |
| Invalidation/Stop | The price that would prove your idea wrong |
| Exit Idea | Your target or profit zone |
| Reason (Checklist) | Why did you take this trade? Reference the 7-step checklist |
| Screenshot Link | Link to a screenshot of the chart at entry |
| Outcome | Win, loss, or breakeven? How much P/L? |
| Lesson | What did you learn? What would you do differently? |
📝 Example Journal Entry
Tips for Good Journaling
Be honest. If you made a mistake, write it down. You can't fix what you don't admit.
Be specific. Don't just write "uptrend." Write "price above EMA 50 and EMA 200, RSI at 58."
Include screenshots. Take a screenshot at entry and save it.
Review weekly. Look for patterns, celebrate wins, learn from losses.
Section 6: How Many Paper Trades Should You Do?
This is one of the most common questions: "How many paper trades do I need before I move to real money?"
The Answer:
Minimum: 10–20 Well-Documented Trades
But it's not just about the number. It's about the quality.
What "Ready" Looks Like
✓ You can explain the reason for each trade using the 7-step checklist
✓ You respected your invalidation levels (didn't move stop losses emotionally)
✓ You reviewed each trade and wrote down a lesson
✓ You're starting to see patterns in what works and what doesn't
Quality Over Quantity
20 thoughtful, journaled trades are worth more than 100 random trades with no notes. If you place 100 trades in two weeks without journaling, you've learned nothing. If you place 20 trades over two months and journal every one, you've built a solid foundation. Don't rush. Make every paper trade count.
Key Takeaways
Common Mistakes to Avoid
This is the #1 mistake beginners make. Without a journal, you're flying blind. You have no idea what's working and what's not. Your journal is your teacher—use it.
If you move or ignore your stop loss on paper, you'll do the same with real money—except then it will cost you. Build the discipline now.
Don't place 10 trades in one day just because it's fake money. Focus on quality setups. Be patient. Wait for the market to come to you.
Paper trading is easier emotionally. There's no fear, no greed, no pressure. Real trading will test you in ways paper trading cannot. Stay humble.
Don't skip the practice phase. If you can't be disciplined and profitable on paper, you won't be disciplined with real money. Take your time. Build a solid foundation.
Your Final Practice Task
Now it's your turn to put everything together:
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1
Activate Paper Trading Follow the steps in Section 2 to activate your paper trading account on TradingView.
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2
Use the 7-Step Checklist Open EURUSD or BTCUSDT on 1H or daily chart. Go through all 7 steps of your checklist.
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3
Place a Paper Trade If you find a setup that meets your criteria (at least 5 out of 7 items align), place your first paper trade.
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4
Fill Out Your Journal Open Google Sheets or notebook. Complete one journal entry with all fields: Date, Pair, TF, Direction, Entry, Stop, Exit, Reason, Screenshot.
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5
Wait & Follow Your Plan Let the trade run. Don't close early. If price hits your stop, close it. If price hits your target, close it. Follow your plan.
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6
Record Outcome & Lesson Once closed, complete your journal: Outcome (win/loss/breakeven? P/L?) and Lesson (what did you learn?).
🎉 Congratulations! You've Completed the Beginner Course! 🎉
Let's take a moment to appreciate how far you've come:
This is a huge achievement. Most people never make it this far. They give up, get distracted, or rush into real trading without proper preparation. But you didn't. You stuck with it, learned the fundamentals, and you're building the right habits from day one.
What's Next?
Immediate Next Steps (Next 1–2 Months)
- Complete at least 20 paper trades using the 7-step checklist and journal every single one
- Review your journal weekly. Look for patterns, celebrate wins, learn from losses
- Practice patience. Don't rush. Don't force trades. Wait for setups that meet at least 5 out of 7 checklist items
- Stay disciplined. Respect your stop losses. Risk small amounts (0.5%–1% per trade). Avoid revenge trading
Long-Term Path (Next 3–6 Months and Beyond)
Once you've completed 20+ paper trades and you're consistently following your process:
- Consider opening a small real account (but only if you're truly ready emotionally and financially)
- Start with very small position sizes (0.01 lots in forex, or $10–$20 in crypto)
- Continue journaling every trade
- Never risk more than 1% of your account per trade
- Keep learning—read books, watch educational videos, join trading communities (but be careful of scams)
Final Reminders
Trading is high risk. Forex and crypto are speculative markets. Prices can move against you quickly. Never trade with money you cannot afford to lose.
This course is for education only. We are not financial advisors. For real investment decisions, consult licensed professionals.
Profits are never guaranteed. Even the best traders lose trades. What matters is that you manage risk, follow a process, and improve over time.
Be patient with yourself. Learning to trade takes time. You will make mistakes. That's okay. Stay disciplined.
Closing Thoughts
Remember why you started this journey. Maybe you want financial freedom. Maybe you want to build a skill that can generate income. Maybe you're just curious about how markets work. Whatever your reason, hold onto it. It will motivate you through the hard days.
Trading is not a get-rich-quick scheme. It's a skill—like playing an instrument, learning a language, or mastering a sport. It takes time, practice, and patience. But if you stay disciplined, manage your risk, and keep learning, you can build real competence over time.
We believe in you. Now go practice. Go build your journal. Go place your paper trades.
See you on the other side. 🚀