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The original text comes from Kelly Og, a 20-year-old entrepreneur, investor, and CEO who became a multi-millionaire at 19. In this controversial video, she talks about paper trading and why it may or may not be beneficial to new traders. So, let's dive into it!
First and foremost, Kelly Og is an entrepreneur, investor, and CEO who has been fortunate enough to travel the world and teach many well-known athletes and celebrities how to leverage their cash and turn it into active capital. And now, she wants to help you do the same. So, stick around and let's talk about paper trading.
Now, I understand that this is a controversial topic, and some of you may be skeptical about what she has to say. But hear her out! In this article, she will explain why she believes paper trading can be good for new traders, but also why she thinks there's a limit to its effectiveness.
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Why Demo Trading Or Paper Trading Accounts Are A Scam
Before we dive into the pros and cons, let me quickly explain what paper trading is. It's a form of simulated trading where you're given fake money to trade with. You can see real-time market movement and place trades just like you would in the real market, but you won't make any actual money from it.
So, why is paper trading good? First and foremost, it allows you to understand how to place trades correctly. I've seen a lot of traders struggle with this, and it can lead to mistakes that cost them real money. Paper trading allows you to make those mistakes and learn from them without any financial penalty.
However, there's also a limit to how effective paper trading can be. It's essential to remember that trading with fake money is not the same as trading with real money. When you're trading with real money, emotions come into play, and you may react differently to market movements than you would with fake money.
In my opinion, paper trading is a great tool for learning the basics of trading, but it's not a substitute for real trading experience. So, use paper trading to get comfortable with placing trades, but don't rely on it too much.
If you're interested in learning more about trading, continue reading this blog. We have a ton of resources to help you improve your trading skills. From technical analysis to mindset training, we cover everything you need to know to become a successful trader.
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