Level 1 - General trading concepts

Paper trading and journals

Practise with virtual examples and record what you learn before using real money.

Paper trading

Paper trading uses simulated money or example prices. It helps you practise order types, position size and trade review without placing real trades. It is useful for learning process, but it cannot fully copy real emotions or execution quality.

Trading journals

A journal records why you entered, where you planned to exit, what happened and what you learned. The goal is not to make every trade look good. The goal is to find repeated mistakes and repeated strengths.

Progress before speed

Beginners should judge progress by consistency: fewer impulsive trades, clearer risk limits and better review notes. That foundation matters before exploring advanced strategies or automation.

Practical example

A journal entry might say: EUR 1,000 virtual account, 1% risk, entry EUR 100, stop EUR 95, reason was a pullback to support, review after close.

Important terms

Virtual capitalSimulationJournalReviewExecution

Paper trading can make decisions feel easier than they feel with real money, so results should be treated as practice, not proof.

Lesson quiz

Answer all 3 questions, then submit. You need 3/3 correct to unlock the next lesson.