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What is PAPER TRADING? | Paper Trading Using Trading View | BOOMING BULLS - YouTube

Channel: Booming Bulls

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Hello guys. My name is Anish Singh Thakur,

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and I am today making

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a video on a topic

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that I don't like myself.

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Paper Trading.

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What is paper...

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What is paper trading? What is this exactly bro.

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Let me tell you and explain what this is.

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I do not like it,

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nor have I ever done it.

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But as I see in upcoming future,

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as India's youth,

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50% youth below 25.

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Many people are going to turn 18 years old,

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16-17-18,

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19-20 years

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who are going to enter this.

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Why? Because tomorrow morning when you wake up

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you can't open a travel company,

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when you wake up tomorrow,

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you can't become a doctor and do an operation,

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when you wake up tomorrow,

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you can't become an engineer and construct a building.

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But when you wake up tomorrow,

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by giving your PAN card and Aadhaar card,

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you can definitely open your account in Zerodha.

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By hearing rumours from here and there,

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hearing tips from different people,

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by joining useless Telegram channels

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you can trade,

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and you can incur total loss,

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and then you abuse the market.

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90% people lose money in the market

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because they just wake up,

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open account in Zerodha,

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just do it, like that.

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So,

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I don't want you to waste lot of money

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in the stock market.

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But that is why

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you guys

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will have to do paper trading

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so that you have some experience.

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I'm going to tell both, positive and negative aspects of this,

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advantage and disadvantage,

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but I want you to definitely open account in Zerodha,

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you do have to open account in Zerodha

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I will give you two links today.

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One is of Zerodha

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from where you can open the account,

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and other of tradingview,

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from where you can do paper trading. So alright,

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let's skip all the chat.

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Let's restart the video.

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So what is Paper Trading.

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Paper Trading is

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trading the real market

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real time

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but with fake money.

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Now who will give this fake money?

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Let me tell you.

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There are 2-3 ways of that.

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Me and my team did lot of research.

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I don't think there's any good paper trading software available

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for the Indian stock market.

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So I will suggest what

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you have to do, why you've to do paper trading

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so that you are able to back test some of your real strategies,

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you are able to back test real indicators,

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real price action.. look, what happens is

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studying by backtesting that I should buy here, sell here, but

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by taking entry in real,

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the four 15 minutes candles that were there

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which means 1 hour,

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did you do anything stupid or not in that 1 hour,

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did you get scared, did you feel anxiety.

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It is very important to check all these emotions.

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For that, you need to have

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some real experience. Look,

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if you're totally new to the market and you invest money, it'd

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be no point as you would incur loss. You will incur loss.

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Why you face loss initially? To explain you

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you don't have to do this from now.

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A person makes 100 mistakes. To solve all those mistakes

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you need real experience that I want you take from paper trading.

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So you understood what this is?

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If you can see here,

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here, my...

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daily candle has taken support at 20 moving average,

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as in my stock at daily timeframe.

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Not it'll go up from here.

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And so you buy it.

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You buy it.

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Now look,

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the problem with paper trading is that

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there are two problems in paper trading.

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Firstly,

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unlimited capital!

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Secondly,

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reverse emotions.

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Reverse emotions?

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Okay, let's talk.

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Okay, before I do..

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before we go ahead, I'd

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like you to take you to the screen.

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This is tradingview.com, okay?

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On tradingview.com

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you have to come over here.

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You know how to come on this screen

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I've made a video on tradingview.

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You can see that.

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You have to click on the panel below, okay?

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Here you have stock screener,

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text notes, pine editor, lots of things are there.

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You have to come on trading panel.

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Now it's asking you to choose your broker.

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Actually a real tradin account can also be added in this.

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Real broker..

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Real broker can also be added in this

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if capital.com, FXCM,

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what is this..

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All these are Forex brokers.

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It's not our Indian market.

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So you can connect.

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You have to connect paper trading.

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Connect this.

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When you will connect this,

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then this is how this will appear, okay?

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So you get your

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order history, account history, all these things.

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I guess it's active now.

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You might have to do some things. I've already set my username.

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I did this just to try basically.

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What can happen now,

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let me open any live market now.

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Like right now it's night time, quite late night,

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it's 04:45 in India, and here it's 03:30.

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Forex market might have also closed,

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no it would be opened, only BTC is open.

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Rest all markets have closed as it's Friday night today.

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So here is BTC.

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Let's come over here.

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If I right click over here,

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I want to trade here, I have traded.

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I click on trade over here, okay?

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Let me click on trade.

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Trade. Sell or buy.

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I've to..

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one minute,

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let's say that if

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market has support here,

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market has support here,

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let me buy, no problem.

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like just in order to see how it is.

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Let me trade,

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create a new order.

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The moment I create a new order, here is sell.

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Here is buy.

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Here is quantity.

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Now,

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you can write 1 also here, 1 bitcoin.

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It's for $30,000

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$33,000,

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you can do 10 also, 3 lakh dollars.

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You can do 100 also.

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In your paper trading account

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you approximately get $100,000

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So you can choose anything here...okay.

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Buy. Now you can set some target also here.

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How many pips,

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I'll explain you later what pips are.

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As in you have to set the price in Indian currency.

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That my target is of X price.

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When it becomes $35,000

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then my target would be set.

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And you have to place stop loss.

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So,

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if it becomes $33,000

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then take me out of the trade.

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Okay?

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Okay?

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And you chose 1 bitcoin.

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See the rtisk-reward, risk is 1%.

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And this much is the risk, anyways leave all that,

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Now let's click on buy.

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Order sent.

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Order is placed. Look.

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Your order is placed right.

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That's it. It's done.

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Look, now over here,

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it will show you exactly

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that.. now it will show you here

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that this is your current order, positions.

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This is the position. We have bought.

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Look, our profit has become $87 by this time.

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It has become $91, We have bought,

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look, market is going up.

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Look this green..

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Can you see this green part, market is going up.

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Right now if the market goes up,

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we're in profit. So, like this,

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you can trade, okay? Let me

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close laptop screen now. I hope I've explained you

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There's no other good software apart from this.

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But so much stuff in this now,

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can you see?

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So much drama do all that.

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You have one more option.

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Second option is, simply open a notebook,

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write down

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that I bought bitcoin at 34074

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I bought 1 BTC.

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And my target is 34... this, that,

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and you write it on paper.

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And whatever result is achieved later, you write on paper.

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You can do paper trading on paper also.

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There is no need of fancy softwares.

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You don't need to see this software at all.

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You can work directly also.

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So I told you two ways of doing paper trading.

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What will happen with this, you..

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I've incurred $120 profit right now.

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So I'm watching.

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How long has it been? Not even 1 minute,

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but my emotions.. I feel like..

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I feel like watching what's happening,

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even when it's not real money.

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So basically you

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gain real experience from this

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If I want to hold this trade for 3 days,

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then do I have the capacity to hold it for 3 days

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that I'm fiddling with this, I'm exiting with right click,

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I'm increasing, decreasing quantity

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what am I doing. All this

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is what's the main thing of a trader.

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Working upon trade management.

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So that is the most important thing to do.

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So I told yoy two ways. One was the software,

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and other was paper.

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Now, problems.

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The problems with paper trading.

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Unlimited capital.

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What happens is

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a persons gets 1 lakh dollars

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then randomly

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for 1 crore...

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he buys ICICI for 5 lakhs,

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SBI for 3 lakhs,

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Reliance for 1 crore, as there's unlimited money.

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So they're doing anything.

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Just doing anything. Firstly,

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you destroyed your entire capital management by this.

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So you..

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I'm against this, still I'm saying you can do it.

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You'lll have to follow two rules.

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First rule is,

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you'd have to solve these 2 things.

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First is

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that you..

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if you put capital on your trade, let's say you

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want to trade after 1 year or want to trade after 6 months

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then after 1 year or 6 months

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whatever rupees you were going to start with, let's say

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you were going to start with 10,000

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or you were going to start with 20,000

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or 1 lakhs or 5 lakhs,

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so that same amount you have to

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put in your demo account.

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So you cannot take SBI for 5 lakhs

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you will take SBI for 5000 only,

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you will have to follow risk management.

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Because

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there's unlimited money, everything is good.

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But still you

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buy SBI for 3000

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even though there's money in your trading account

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This is what you will have to do.

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This is a mistake all beginners make,

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those who've done this will agree with me

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Everyone does this.

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So randomly it sets in the mind.

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So firstly, you have to take right capital.

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Second, reverse emotions.

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What happens, this world

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works on the concept of pain and pleasure.

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You do paper trading,

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you have bitcoin,

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you make profit,

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I'm feeling so bad dude.

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Why you are feeling bad?

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I wish I would have invested real money.

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And when you make loss,

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red, oh, this was good that happened,

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what good happened? Damn, I incurred a loss.

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It was good that I didn't invest real money.

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What did you do?

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You are getting pleasure in loss,

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and you're getting pain in profit.

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The reverse happened.

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And I'm telling you,

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after 2-3, after 3-4,

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3 years of trading, real money trading,

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it all depends on your psychology.

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How you take entries,

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how you manage entries,

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how long you manage entries,

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how long you hold winners,

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how fast you cut losers,

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and all this.

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So, it's psychology..

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And if your base, foundation itself

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starts badly, then..

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You have to remember,

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you have to pick the right quantity,

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and whenever you'll incur loss

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or you gain profit,

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you will be emotionless,

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you will not celebrate a loss or a win,

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you will be neutral always.

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You're just making experiences.

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So if you do these two things

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then you can do paper trading

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and you can get real market feeling

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without wasting the time.

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Once more, important thing,

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if you want to trade after 1 month, 2 months,

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you open an account in the best trading platform in India, okay?

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In tradingview,

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if you want to open account in this I'll give you link

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you can click and open your accounr directly from there

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it's a free account, and if you want to do real trade

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Zerodha is the best platform,

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I will provide the link,

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first I'll give Zerodha link,

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click on that and open your account.

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And Zerodha is the best overall.

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I also gave zero to Zerodha

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when it hung up,

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all brokers had hung up,

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it keeps happening, not a big deal.

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And

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interface is very good,

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all youth will like it, works very well on mobile apps

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and here also works very well

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But definitely open account in Zerodha,

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I guess it costs 300-400 Rs,

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500 rupees, I don't know.

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It costs negligible money.

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And let it remain funded with

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5000, or 5000-10,000

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but you won't trade.

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Or I'd suggest don't even do the funding now.

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Just keep your account opened.

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Set an aim, 1 month, 2 months, 6 months, 1 year.

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Okay? You have to trade after that only.

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So till then please

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protect your capital,

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protect your emotions and psychology,

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and

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please be serious about,

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even while doing paper trading.

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All experienced people who have incurred loss in market

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all of you will agree

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if you've done paper trading then randomly

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you'll do one, you pick a quantity, you

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just see anything and leave, you laugh,

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you get happy if you incur loss,

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don't do that. If you do it seriously,

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then even paper trading can be quite useful.

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Although I haven't done it.

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I did wrong,

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I lost my real money in starting in market,

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I learnt from that only.

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Okay? But I'm telling you one thing.

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When you'll enter into real trading from paper trading

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everything will change.

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Then your new career will start.

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And you'll have to bear heavy emotions.

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So fine then.

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Instead of bearing directly it's better to bear this

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there would be some betterment

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only if you follow these two rules, okay?

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So guys, I thought to make this video since a lot of days

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and I've made it today.

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If you liked it.. if you want

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