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Learn › Paper Trading Lab

Paper Trading Lab

$100,000 of virtual cash is only useful if you practise something on purpose. This free course pairs every module with a mission in Paper Trading — so you build a real plan, place real orders at live prices, read the numbers properly, and find out honestly whether your approach beats doing nothing, before any real money is involved.

The practice loop A cycle of four steps: plan, trade, record and review, with review leading back to plan. Practice that teaches you something runs in a loop, not a straight line 1 · Plan goal, mix, limits 2 · Trade size, order, fill 3 · Record journal, P&L, dividends 4 · Review vs benchmark, after costs Each module adds one piece of the loop, and each one ends with a mission in Paper Trading.
A practice account without a plan and a scorecard is just a game with live prices. With them, it is the cheapest education in investing there is.
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What you'll be able to do

  • Use a paper trading account for what it is good at, and know exactly what it cannot teach you.
  • Pick the right listing, read a bid and ask, and choose between market, limit and stop orders.
  • Write a five-line plan and build a core-and-satellite portfolio sized from a risk budget.
  • Calculate average cost, realized and unrealized profit and loss, and each position’s contribution to return.
  • Audit a portfolio for hidden concentration, including overlap between index funds and individual stocks.
  • Rehearse a drawdown with written rules and a trade journal — and never press Reset.
  • Handle dividends, splits and reverse splits, and add back what the simulator leaves out.
  • Score your results against a fair benchmark after realistic costs, and decide whether you are ready for real money.
Before you start: how the simulator differs from a real account. RiskStock Paper Trading uses market orders filled at the last price (even when the market is closed), with no spread, no commissions, no currency conversion and no dividends credited. Splits are adjusted automatically, fractional shares are allowed, and there is no margin or short selling. Module 1 covers every difference, and the course shows you how to correct for each one.

The syllabus

Eight modules, about 90 minutes of reading plus the missions. Foundation → Core → Advanced → Mastery. Modules 1–4 set up your practice account and teach you to read it; Modules 5–8 put it under pressure and keep score.

1
Why Practise With Fake Money Foundation
What paper trading is genuinely good for, the three things it cannot teach you, and exactly how the RiskStock simulator differs from a real brokerage account.
~9 min read
2
Placing Orders: Market, Limit & the Spread Foundation
Tickers and share classes, the bid–ask spread, market versus limit versus stop orders, what happens outside market hours, and how to make simulator fills more realistic.
~11 min read
3
Building a Starter Portfolio With $100,000 Core
A written plan in five lines, a core-and-satellite structure, sizing each position from a risk budget, turning dollars into shares, cash reserves, and the currency problem.
~13 min read
4
Reading Your Account: Cost Basis & P&L Core
Account value versus cash, average cost, realized and unrealized profit and loss, a position’s contribution to the whole portfolio, and how to read an equity curve.
~12 min read
5
Diversification You Can See Core
Holdings versus bets, sector weights, the overlap hiding between index funds and individual stocks, correlation in a crash, and a concentration audit of your practice account.
~11 min read
6
Surviving a Drawdown Advanced
The recovery arithmetic, making paper losses feel real, rules written before the fall, the mistakes people make after one, why you should never press Reset, and a trade journal.
~12 min read
7
Dividends, Splits & Corporate Actions Advanced
The dividend dates and what happens to the price, adding the dividends the simulator leaves out, how splits and reverse splits change your shares, and spinoffs, mergers and delistings.
~11 min read
8
Keeping Score Honestly Mastery
Benchmarking against doing nothing, the costs a simulator ignores, luck versus skill, a practice scorecard, and a checklist for deciding whether — and how — to move to real money.
~13 min read

Your notes

Every note you take in a module collects here — your plan, your rules, your journal. They're stored only in this browser, so export them to keep them.

Common questions

Is paper trading actually useful?

Yes, for specific things. It teaches the mechanics of placing orders, how average cost and profit and loss are calculated, and whether you can follow written rules over months — all without risking money. It cannot teach you how losing real money feels, it leaves out real-world costs like spreads, currency conversion and tax, and a short record cannot prove skill. This course is built around using it for what it is good at.

Do I need an account to take this course?

No. The course and the Paper Trading simulator are both free and need no sign-up. Your progress, quiz scores, notes and your practice account are saved privately in your own browser, and you can export your notes and back up your practice account.

Does the RiskStock simulator include dividends?

No. Paper Trading does not credit dividends or convert currencies, and fills market orders at the last price even when the market is closed. Stock splits are adjusted automatically. Module 1 lists every difference from a real broker, and Modules 7 and 8 show how to adjust your results for the missing dividends and costs.

How long should I paper trade before using real money?

There is no fixed number. A better test than time is whether you have been through at least one meaningful fall in your practice account while following your written rules, and whether your approach beat or matched a simple index fund after realistic costs. Module 8 includes a full checklist.

Is this course for Canadian investors?

It works for anyone, and it covers the Canadian specifics that matter in practice: TSX versus US listings, the currency problem when mixing them, adjusted cost base, and conversion costs at Canadian brokers.

Educational purposes only — not investment advice. Paper trading is a simulation; no real money, securities or brokerage accounts are involved, and simulated results are not indicative of real results. Any portfolios, tickers and figures in this course are illustrative examples, not recommendations to buy or sell any security. Historical market figures are not forecasts. RiskStock is not a registered dealer or adviser. Always do your own research and consult a licensed advisor.