Paper Trading vs Real Trading

Is there a difference between paper trading and trading with real money? The short answer is yes, and it comes down to two key elements: you and your broker. It doesn't matter if your paper trading involves actually pen and paper, if it consists of a watchlist, or if you use a demo trading account online – these difference will still apply.

Your efforts to paper trade are valuable, don't get me wrong – after all practice makes perfect. You must practice your system and your practices so you can better execute the trades when your signals are triggered and paper trading can and will help with this.