Some Rookie Questions

highnoon

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New to the game and looking to tap into the collective wisdom.
I started trading (gambling, really) in October.
Made some big profits and suffered some big losses.
I'm still profitable and am now trying to preserve my capital until I find an edge.

I've papertraded all last week. I'm using a couple indicators to get into either DXD or DDM for short term trends.
If both indicators are green I go in very heavy, trying to maximize gains on very small market movements.
My plan is to use fairly large capital on small movements to basically nickle and dime my profits. Cut losses early if my indicators don't prove out.

So far the indicators have proven out, but I am ready to bail quickly to live and trade another day. I think if I cut losses by getting out quickly and staying in when correct I can conservatively profit.
I'm looking to make a quarter of 1 percent for starters - 25 bucks a day, averaged, on 10k.

I understand the concept of papertrading until success in a system is seen but I just went 5 days making money on paper but not reality.

So, how long should i papertrade if my system plays out?
Any flaws in my approach?

BTW, I am reading all the FAQ and newbie posts but wouldn't mind a little instant gratification on my actual Q's.
 
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How long to paper trade depends on how much back-testing you've done on your trading system. Ideally, you should back-test over the full range of market conditions you are likely to face trading that system. If you haven't done that, then you'll want to paper trader over a similar sort of span. If you have done the back-testing, then once you are confident you can execute the system as designed and intended, then make the move to real money.
 
My rule for demo trading is double your account TWICE. That confirms to yourself both physically and mentally that you are capable of a positive performance. More analysis will give you better results and there is no replacement for screen-time. Just my humble if somewhat biased opinion
 
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