Your first paper trades

Now you can put it together. This lesson is your checklist for your first block of paper trades.

Set up

• Open a demo account with a realistic balance.
• Pick one major pair and one session.
• Write your setup, your risk per trade and your daily loss limit in your Trading Plan.

For each trade

1. Check the calendar for high-impact news.
2. Confirm the setup fits your written plan.
3. Mark your entry, your stop and a target of at least 3:1.
4. Calculate your position size.
5. Place the trade with the stop on the platform.
6. Record it in your journal, including how you feel.

After each block of 10 trades

• How many trades followed every rule?
• What happened just before each broken rule?
• Is one change needed? Change one thing only, then test it for another block.

Moving on

Do not decide to go live after a good week. Set your conditions in advance, such as a minimum number of trades and the share of them where you followed every rule. Even then, going live is a choice with real risk, as most retail CFD traders lose money.

Key point

Finishing a block of disciplined paper trades is a real achievement. It is the foundation of everything else we teach.