How to Use Paper Trading in TradingView + FAQ

Have you ever wondered how you can increase your profits in digital currency exchanges? Well, TradingView might just be the answer you’re looking for! One of the most exciting features of TradingView is the paper trading section, where you can practice trading with fake money in a real-world setting, learn from your mistakes, and ultimately improve your trading skills.

In this guide, I’ll walk you through everything from the basics, such as how to register on TradingView, to some of the more advanced techniques, such as analyzing indicators. So, let’s get started!

What is Paper Trading?

Paper trading is a great way for traders to practice buying and selling securities without the fear of losing real money. It’s a simulated trading environment where you can experiment with different trades and strategies, explore different markets, and learn to interpret market signals.

This is an excellent tool for both beginner and experienced traders, as it allows you to gain valuable experience and fine-tune your trading strategies. You can use paper trading to experiment with new tactics or to optimize your existing strategies.

Signing up on TradingView

Here’s a step-by-step guide for signing up to make it easy for you:

1. Head over to the TradingView website.

2. Click on “Get Started” located in the top right corner.

3. On the next page, click on “Sign Up” also located in the top right corner.

4. You’ll be given the option to register using your Gmail, Yahoo, Twitter, Facebook, LinkedIn, or Apple account. Don’t worry if you don’t have any of those, you can still sign up using your email from other websites!

5. We recommend going with the Google option and selecting your preferred email on the next page.

6. Once you’ve successfully signed up, you’ll be taken to a new page where you’ll see a letter of the English alphabet in the upper corner. That letter will be the first letter of your TradingView username. Cool, right?

Activating Paper Trading on TradingView

Here’s a simple guide to help you to active paper trading feature:

1. Look for the Search box in the middle of the top section of the page.

2. Select the “Crypto” option on the new page.

3. Type in the name of the digital currency you want to trade in the Search box and it will appear in the list below.

4. I want to trade Bitcoin, so I click on the “BTCUSDT” option on the BINANCE exchange. That’s the chart for Bitcoin/Tether. If you’re interested in trading another digital currency, just type its symbol followed by USDT in the Search box.

5. Look for Order Panel in the bottom right corner of your computer screen and click on it.

6. Click on “Connect to broker” button.

7. On the new page, click on “Paper Trading” and then click on “Connect”.

8. Click on “Connect” again.

Now, paper trading is activated for you! To activate paper trading on your smartphone, click on the circle in the upper left corner to see the “Connect to broker” option.

Resetting Paper Trading account on TradingView

On the Paper trading page, look for “Account balance” and you’ll see that paper trading has given you $100,000 to trade with. let’s adjust the paper trading settings to make it more realistic. Click on “Paper Trading”, and then click on “Reset Paper Trading Account”. type your favorite amount in the box, and then click “Reset”.

Adding Indicators to TradingView

Indicators can be very helpful in guiding your paper trading decisions. Look for “Indicators” in the top section of your computer screen and click on it. There are many indicators available on TradingView, so you can search on Google to find the best one for your trading strategy.

On your smartphone, click on the name of the chart (for example, BTC/TETHER) to reveal the horizontal three dots. Click on the three dots and then click on “Add indicator”.

I recommend the Supertrend and MACD (Moving Average Convergence Divergence) indicators for you to try out. Just search for them in the Search box on the Indicators page and click on their names to add them to the chart.

Remember, these indicators aren’t always accurate and if you purely rely on them, you will lose all you have.

Interpreting Supertrend Indicator on TradingView

The Supertrend indicator shows an upward trend in green and a downward trend in red. In some areas, you may also see the words “sell” and “buy”. However, it’s important to note that you shouldn’t always follow these recommendations. If you use this indicator for about a month in paper trading on TradingView, you’ll get a better understanding of how it works.

Interpreting MACD Indicator on TradingView

The MACD indicator shows an upward trend with green rectangles and a downward trend with red rectangles. When the rectangles are red, it’s not advisable to buy any currency. However, the opposite isn’t always true. When you see the smallest green rectangle, consider the Supertrend indicator and then decide whether to buy or not.

Buying Digital Currency in Paper Trading on TradingView

You can see two large horizontal rectangles in blue and red on the chart with the price of the digital currency written on them. To buy digital currency, click on the large blue rectangle. Then, on the new page, you can purchase the desired digital currency through two methods: Market and Limit.

To buy currency in the Market section, you only need to write the amount of digital currency in the Unit box based on the amount of dollars available in your paper trading account. For example, if you have $50 and the Bitcoin price is around $17,000, divide $50 by $17,000 and write the resulting number in the Unit box. Finally, click on the “buy x btcusdt mkt” rectangle.

You can also create a custom order at the desired price in the Limit section. When the price of the digital currency reaches your price, TradingView will buy the desired digital currency for you.

You can write any number in the Unit box, even more than your paper trading account balance. Therefore, professional traders who are looking for futures trading simulation can trade without changing their settings. If you have recently decided to enter the world of digital currencies, avoid using leverage on TradingView. Instead, use the calculator to determine the number of digital currencies based on your account balance.

Selling Digital Currency on TradingView

When you think that the digital currency you have purchased won’t be profitable based on the indicators, it’s time to close your order. Look for the blue horizontal line on the chart of your desired digital currency and click on the X sign on this line. A new page will open where you can sell all or part of your digital currencies.

Preventing Loss and Making Profit in Paper Trading

You can find the Take Profit and Stop Loss sections on both the Market and Limit pages. You can use both of them simultaneously. When the price of the digital currency reaches the price set in Take Profit or Stop Loss, it will be sold automatically (even when you’re asleep!). In addition to price, you can also set the amount of profit or loss or the percentage of profit or loss. Finally, don’t forget to click on the large “Buy x btcusdt” rectangle.

How to Adjust the Timeframe on Crypto Chart in Paper Trading

Each rectangle on the chart you see represents one day. Look for the letter “D” (one day) at the top and click on it. Now, you can adjust the timeframe of each candle (rectangle) on the chart from one minute to 12 months. For example, if you choose the one-minute option, each candle will represent one minute. Note that selecting timeframes below one minute is not possible in the free version of TradingView.

How to Set Alerts on TradingView

To set alerts on TradingView, simply look for the bell icon at the top of your desktop screen or click on the circle in the upper left corner on your smartphone. This tool will notify you when the digital currency reaches a specific price, and you can even set the number of repetitions and the expiration date for the alert.

Final Tips

Always keep an eye on the real-time price page for cryptocurrencies. You can sort the digital currencies based on their price increase or decrease in the last 24 hours. Open the chart for the cryptocurrency with the highest price increase in Paper Trading and use indicators to help you decide whether to buy or not. Do you want to download paper trading app? then you need to download TradingView.

Remember, many factors like war and reasons behind the LUNA crash can affect cryptocurrency prices. So even if you can make a good amount of money with help of the paper trading, you might lose all your money one day. If you are thinking about trading as a way to earn money, I strongly advise you to learn a skill and keep trading as a hobby.

FAQ

Here are some common questions people have about paper trading:

What is the point of paper trading?

Paper trading is a practical learning tool that allows you to gain experience, develop strategies, and understand market dynamics without the risk of actual financial loss.

Can I use real market data for paper trading?

Yes, many platforms like TradingView allow you to use real-time market data for your paper trading exercises. Some even provide historical data so you can backtest your strategies.

How realistic is paper trading?

While paper trading is not real trading, the simulation is often very close to real trading conditions. However, it’s worth noting that paper trading may not fully capture the emotional aspects of trading with real money.

Can paper trading help me become a successful trader?

While paper trading can help you learn the basics and refine your strategies, being successful at paper trading does not necessarily guarantee success in real trading. Real trading involves additional factors such as emotional stress that may not be present in a simulated environment.

How long should I use paper trading before trading?

There is no set amount of time that you should use paper trading before you start trading with real money. It really depends on your level of comfort and confidence with your trading strategies. Some traders may feel ready to start trading with real money after just a few weeks of paper trading, while others may want to paper trade for several months or even longer. The important thing is to make sure you feel confident in your abilities before you start trading with real money.

Is paper trading good or bad? What are the cons of it?

Overall, paper trading is a good thing for traders, as it allows you to gain experience and confidence without risking real money. However, there are some potential downsides to paper trading. One of the main cons is that paper trading does not fully capture the emotional aspects of real trading.

Is paper trading in TradingView free?

Yes. Paper trading in TradingView is available for all users, including those on the free plan.

(ONLY FAG has been written with AI’s help.)