What is paper trading and why you should start there

Paper trading (or "simulation") means running your strategy on the real market but with virtual money. Prices, timing and outcomes are real; only the capital is fake. Nothing is at stake.

Why it matters

• You see exactly how a strategy or bot behaves — when it enters, when it closes, how often it wins — before risking a cent.
• You catch problems (bad filters, weird edge cases) with zero cost.
• You build the discipline to leave a strategy alone instead of tinkering emotionally.

What paper trading can't tell you

Paper fills are optimistic: in real life the order book, slippage and the odd failed order eat into results. A good simulator applies the same fees a real trade would, so the numbers aren't fantasy — but treat paper results as the ceiling, not the guarantee.

The rule

Run any new bot or strategy in paper for days, not minutes. When you go real, start small. The market will still be there tomorrow.

This article is informational, not financial advice. Trading prediction markets carries a risk of total loss. Check that using it is legal in your jurisdiction.