Many traders go through the process of designing a trading strategy or investor approach and end their apprenticeship without fully testing their strategy. The key to successful trading is to continue to hone your approach until you are able to work out all of the kinks. The best was to handle this process is to paper trade the markets.
Paper trading is the concept of trading the markets without risking any capital. Many brokers and electronic markets allow you to do this and will help you keep track of your profit and loss, as well as your balances. Most of the companies call this a practice account and offer you the opportunity to trade based on real time data.
Fortunately, you really do not need a broker or an ECN to help you paper trade. Paper trading can be accomplished by using a spreadsheet or even a piece of paper.egy is slightly different.