Why paper trade?
There are a number of reasons to do this.
In summary, it is a fantastic way to gain close-to-realistic
with share trading, and to test your intended trading
- Many people who rush into share market investing
lose money. By practising first, this situation can be
- It is possible to have many consecutive losses. It
important to realise this, and to experience it (in a
no-loss environment), and to be able to cope with it
- It is important to get a good feel for the concepts
of cutting losses early, and to practise it.
- Novices in the market will gain good emotional
experience by pulling the trigger themselves.
- It is an opportunity to test out a trading strategy
in a realistic environment without committing or risking
any real money.
- Many people don't realise how much brokerage costs
can impact on potential profits. A good trading simulator
This question is answered in more detail the first page of
Brainy's eBook (PDF) Article, ST-3100, "Trading practise - Back Testing
and Paper Trading".
Toolbox Members can see more details in the full Article here.
(Non-Members can see the "Page 1" of all
from the Table of Contents page.)
For a number of years now, the ASX has been
running a share market trading game twice each year, with
advertising sponsored by a corporate sponsor (mostly one of
banks). There are normally two games offered concurrently -
school students, and one for the public.
There are usually two games in each year, running for about 16
one from about February to June, and one from about July to
To play the game, you need to do three things:
- Sign-up on the ASX web site, and
create your MyASX login-id. This is
no obligations, and no spam. MyASX is a collection of free
services including:- online classes, personal watchlists,
- Pre-registration - Express an
interest in playing the game, so that they will notify you
registration is open.
- Register to play the game
- within the 2-week period just prior to the game
ASX Sharemarket Game - how it works - brief overview
- Brief introductory information about the
game is here..., including information about any
(usually $5,000 cash prize for the winner, plus more).
- Create your MyASX login-id.
- Pre-register to play the game before the next game
starts - they will send you an email reminder when
- Register during the registration period.
- The game is based on a number of companies (recently,
150 companies) on the Australian market.
- Each player is allocated $50,000 of fantasy money.
- There are a number
of game rules regarding position size, and other
- Place buy and sell orders at any time of the day.
orders are executed in line with the market and will match
in the market. If a stock does not trade, or trades
thinly, this is
reflected in your trading history.
- Read the latest Game Newsletter for game
information, and occasional tips and hints.
Sharemarket Game - some tips
If you want to play the ASX Sharemarket game, then here are
to help you succeed:
- The trend is your friend. If you invest
confirmed, on the "hope" that a trend is imminent, then
- Set a Stop Loss for every position
held, and if
the stop level is hit, then sell without question - do not
the game we can't actually place a conditional sell order,
so we need
to know what our stop loss level is, and watch our stocks
- How to do all this? -
Prepare a price chart. Make notes on the chart (the
reasons why you
want to buy the stock). Note the Stop Loss level
at which you would sell
if the price falls. After the buy is made, note the actual
buy price on
Other paper trading options
The following list of additional methods and
options is not currently recommended; but is
offered here for exploration opportunities:
NOTE: These are not recommended.
Share Market Terminology
See Brainy's eBook Articles, and the Master
Index list for details.
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See a list of contents on
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And whatever you do,
beware of the sharks in the ocean!
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many tools in Brainy's Share
The information presented herein
opinions of the web page content owner, and
are not recommendations or
endorsements of any product, method, strategy, etc.
For financial advice, a professional and licensed financial
should be engaged.
Copyright 2011-2021, R.B.Brain -
Consulting (ABN: 52 791 744 975).
Last revised: 17 July 2021