Paper trading is a simulated form of trading. You record or place pretend orders using market prices, but no real money or securities change hands.
What it teaches
Paper trading can help you practise order types, position sizing, entry and exit rules, journaling, and risk management. It is especially useful when learning how a trading plan behaves over a series of decisions.
Its limit
Simulation cannot fully reproduce real emotions, slippage, liquidity, or execution pressure. Treat results as practice evidence rather than proof of future performance.
