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Beginner5 min read

How to Paper Trade

Practice trading with simulated money — no risk, real learning.

Why Paper Trade?

Paper trading lets you practice buying and selling stocks with simulated money. You get the experience of making real decisions — choosing a stock, picking a direction, watching the outcome — without risking a single dollar.

It's the "Practice" step in TickerTrust's Decision Loop: Observe, Analyze, Practice, Reflect. You observe the data, let the AI analyze it, then practice your thesis with a paper trade before reflecting on the outcome.

Step 1: Go to the Paper Trading Page

Click "Trade" in the main sidebar, then select "Paper Trading" from the sub-navigation tabs. You'll see the paper trading interface with a form to submit trades and a table of your current positions.

Step 2: Choose Your Direction

Every trade starts with a direction. You have two choices:

  • Open Long: You think the stock price will go up. You profit if the price rises.
  • Open Short: You think the stock price will go down. You profit if the price falls.

Step 3: Enter the Trade Details

Fill in the trade form:

  • Symbol: The ticker of the stock you want to trade (e.g., AAPL, TSLA, NVDA).
  • Quantity: How many shares. Start small — 10 to 50 shares — while you're learning.
  • Your Reasoning: Write 1-2 sentences about why you're making this trade. This is important — it creates a record so you can reflect on your thinking later.

Step 4: Submit and Monitor

Click "Submit Trade" to open your paper position. It appears in your active positions table showing the entry price, current price, and live P&L.

Check back periodically to see how your trade is doing. The position updates with real market prices so your simulated gains and losses reflect what would actually happen.

Step 5: Close Your Position

When you're ready to exit, click "Close Position" on the trade. Your final P&L is calculated and the trade moves from active positions to your trade history.

After closing, take a moment to reflect. Did the stock move the way you expected? If not, why? This is where the Reflection Comparison Block helps — it compares your original reasoning against the actual outcome.

Tips for Getting the Most Out of It

Treat paper trading like real trading. If you wouldn't risk $5,000 of real money on a trade, don't paper trade it just because it's free. The habits you build here carry over to real trading.

  • Always write your reasoning — it trains you to have a thesis before every trade.
  • Set a mental stop loss even in paper trading. If a trade drops 5-10%, close it.
  • Review your trade history weekly to spot patterns in your wins and losses.
  • Use the Trade Journal to tag and annotate your trades.

Key Takeaways

  • Paper trading uses simulated money — zero risk, real market prices.
  • Always write your reasoning before submitting a trade.
  • Monitor your positions and close them when your thesis plays out (or doesn't).
  • Treat it like real money to build good habits.
  • Review your trade history to learn from both wins and losses.

Ready to try it?

Put what you learned into practice.

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TickerTrust is for informational and educational purposes only. Nothing on this page constitutes investment advice, financial advice, or a recommendation to buy or sell any security. Use of TickerTrust does not create an investment adviser–client relationship, broker–customer relationship, fiduciary relationship, or any duty to monitor your portfolio. TickerTrust does not consider your personal financial situation, investment objectives, risk tolerance, tax position, or overall portfolio. All investments involve risk, including loss of principal. Past performance does not guarantee future results. Always consult a qualified financial advisor before making investment decisions. Terms · Privacy