Hi Hectormu7,
Welcome to the community and thank you for your comments I am glad you like the videos and these are good questions you have asked.
I think in general no matter what market people trade they will almost always do better in paper trading than they will in real trading. There are in my opinion two reasons for this.
The first is that slippage, or the difference in the price where you click to enter a trade and the price where you are actually executed exists in real trading but not in paper trading. Here is article that gives a more
in depth explanation of slippage.
The second and more important reason however is that psychology plays a huge role in the success or failure of a trader and when trading with paper money, you remove many of the psychological elements that are the downfall of so many traders.
It is for this reason that many people recommend trading live with small amounts of money shortly after you have your strategy down and understand the order entry techniques so you can bring that extra psychological element into the picture and start learning to deal with it with small money on the line before trading bigger money.
If you are interested in learning more about the psychology of trading see
module 5 of the free InformedTrades.com video trading course and our
trading psychology section of the site.
There is also a good article on why it is difficult to make the
switch from paper to real trading here.
If anyone else has any input on this one please feel free to leave it in the comments section below.
Best Regards,
Dave