Learn the fundamentals of trading and master your strategy.
Paper trading is the practice of simulated trading without risking real money. It's the perfect way to:
Buy (Long): Purchase an asset expecting its price to rise. Profit when price increases.
Sell (Short): Sell an asset you don't own, expecting price to fall. Profit when price decreases.
Market Order: Execute immediately at current market price.
Limit Order: Execute only at your specified price or better.
An order that automatically closes your position when price reaches a certain level, limiting your losses.
Buy and sell within the same day, closing all positions before market close. Requires active monitoring and quick decisions.
Hold positions for days or weeks to capture medium-term price movements. Less time-intensive than day trading.
Long-term approach holding positions for months or years based on fundamental analysis.
1. Never risk more than 1-2% per trade: Protect your capital by limiting exposure on each position.
2. Use stop losses: Always have an exit plan before entering a trade.
3. Diversify: Don't put all your capital in one asset or sector.
4. Control emotions: Stick to your strategy and avoid impulsive decisions.
5. Keep a trading journal: Track your trades to identify patterns and improve.
Support & Resistance: Price levels where assets tend to stop and reverse.
Trend Lines: Connect highs or lows to identify market direction.
Moving Averages: Smooth out price data to identify trends.
RSI (Relative Strength Index): Measures momentum to identify overbought/oversold conditions.
Volume: Confirms price movements and trend strength.
Apply what you've learned with Stoxchain's paper trading platform. Practice risk-free and build your skills!
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