You've been paper trading for a month. Your virtual account shows ₹50,000 profit. You're feeling confident. Should you switch to real money?
The answer isn't simple. This article will help you make that decision with clarity—not emotion.
⚠️ Critical Warning:
95% of traders who switch too early lose money. Not because they lack strategy, but because they underestimate the emotional gap between paper and real trading.
7 Key Differences Between Paper and Real Trading
1. Emotional Impact
Paper Trading:
"Oh well, lost ₹10,000 (virtual). Let me try again."
Real Trading:
"I LOST ₹10,000! That's my month's savings! 😱"
2. Decision Making
Paper Trading:
Logical, calm, follows plan perfectly
Real Trading:
Fear-driven, greedy, second-guesses everything
3. Holding Period
Paper Trading:
Easy to hold through drawdowns, stick to plan
Real Trading:
Exit at first profit, panic sell at small loss
The Brutal Truth Nobody Tells You
90% of profitable paper traders lose money when switching to real trading.
Here's why: Paper trading teaches you STRATEGY. Real trading requires EMOTIONAL CONTROL. These are completely different skills.
What Changes in Real Trading:
Your Brain Chemistry Changes
Real money triggers different parts of your brain:
- Fear - Exit profitable trades too early
- Greed - Hold losing trades hoping for recovery
- Hope - Average down on losers (disaster!)
- Revenge - Overtrade after a loss
Still in Paper Trading Phase?
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The 5-Point Readiness Test
✅ 1. Consistency Test
Required: Last 30 trades are NET profitable
Not every trade needs to win—but overall should be positive for a full month.
✅ 2. Discipline Test
Required: Following stop-loss 100% of time
If you've moved/removed stop-loss even once in 30 days → Not ready.
✅ 3. Strategy Test
Required: Can explain your edge in 1 sentence
Example: "I buy Calls when Nifty breaks resistance with volume"
✅ 4. Risk Test
Required: Max drawdown < 15% in paper trading
If you've blown up your virtual account → Keep practicing.
✅ 5. Capital Test
Required: Have 6 months of living expenses saved SEPARATELY
Never trade with money you can't afford to lose.
If you pass all 5 tests → You're ready to switch! ✅
If you fail even ONE → Continue paper trading.
The Safe Transition Plan (4-Week Bridge)
Don't jump from paper to full-size real trading. Use this 4-week bridge to ease into real money:
Week 1: Micro Trading (10% of Target Size)
- 📊 Trade with 1 lot only (even if you can afford 10)
- 🎯 Goal: Get comfortable with real platform, real fills
- 💰 Expected P&L: ₹500-1,000 (tiny but REAL)
- 🧠 Focus: Emotions, not profits
Week 2: Small Size (25% of Target Size)
- 📊 Increase to 2-3 lots
- 🎯 Goal: See if strategy still works with real money
- 💰 Expected P&L: ₹2,000-3,000
- 🧠 Focus: Maintaining discipline at higher stakes
Week 3: Medium Size (50% of Target Size)
- 📊 Increase to 5 lots
- 🎯 Goal: Handle larger swings without panic
- 💰 Expected P&L: ₹5,000-8,000
- 🧠 Focus: Stop-loss discipline with meaningful money
Week 4: Full Size (100% of Target Size)
- 📊 Trade with planned position size
- 🎯 Goal: Execute strategy consistently
- 💰 Expected P&L: Based on your edge
- 🧠 Focus: Treating it as business, not gambling
⚠️ Critical Rule:
If you have 2 consecutive losing weeks at ANY stage → Drop back to previous size. Don't force it.
5 Transition Mistakes That Cost Lakhs
❌ Mistake 1: Switching After One Profitable Week
You made ₹50,000 in paper trading last week. You think you've "figured it out." Wrong.
✅ Fix: Need 30+ days of consistent results, not one lucky week.
❌ Mistake 2: Going Full Size Immediately
"I was trading 10 lots in paper, so I'll start with 10 lots in real." Disaster waiting to happen.
✅ Fix: Start with 10% of paper trading size, scale up slowly.
❌ Mistake 3: Changing Strategy
"Paper trading worked, but now I'll try this new strategy from YouTube." Recipe for losses.
✅ Fix: Trade the EXACT same strategy that worked in paper trading.
Real Success Stories: Paper to Profit
Raj, 28 - IT Professional
Paper Traded: 3 months | Real Trading: 6 months
"I was profitable in paper trading after 1 month. But I practiced for 3 months total because I wanted to be BORED of winning. When I switched to real trading, started with 1 lot for first month. Now trading 5 lots consistently profitable."
Current P&L: ₹80,000 profit (6 months)
Priya, 34 - Teacher
Paper Traded: 2 months | Real Trading: 4 months
"I rushed into real trading after 2 weeks. Lost ₹30,000 in first month. Went back to paper trading for 6 more weeks, fixed my mistakes. Second attempt has been much better."
Current P&L: ₹25,000 profit (after initial loss)
Common Pattern:
Successful traders practiced for 2-6 months in paper trading, then started real trading with tiny positions, and scaled up over time.
Know Your Next Step
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