If you’re new to options trading or testing a new strategy, paper trading is one of the best ways to practice without risking real money.

But to get the most out of it, you need to approach it the right way.

Too many traders treat paper trading like a game—taking oversized positions, ignoring risk management, or making trades they wouldn’t take with real money.

This creates bad habits that don’t translate well to live trading.

The key to effective paper trading is treating it like the real thing.

Follow your strategy.

Manage risk properly.

Possibly most important… track your trades just as you would with real capital.

This will allow you to see exactly what is working… and what is not!

However, the goal isn’t just to see if a trade works—it’s to refine your process, build discipline, and gain confidence before going live.

You will most certainly make mistakes when starting a new strategy.

It is best to make them with a simulated account and not lose your hard earned money!

With the right approach, you’ll develop the habits, skills, and confidence needed to trade consistently when real money is on the line.

So treat it like the real thing…

And when you’re ready, you’ll have the confidence to execute with precision!

Here’s to trading smarter,

– The NavigationTrading Team