While a lot of people see the potential of investing in the stock or forex market, a lot of people also are afraid to put money in right away without knowing how to trade. As this is quite a valid reason to stay off the market until one has mastered some of the basics, nothing can teach the real thing much like the real thing. This is why a lot of people alternatively resort to a day trading simulator to get some practice.
Of course, the first thing that one would ask himself is what exactly simulators are like and how to use them. In a nutshell, whatever one would find in a real platform is pretty much the same thing he will find on simulators. The first thing that he will notice would be a chart that shows the movement of price.
The graph also allows one to view it in a line form, a bar form, or a candlestick form. The candlestick graph is the most popular because it can show the most precise movements of the price. This allows the traders to know exactly how the price of the commodity moves so that he will know what move to make.
Another feature that is part of simulators and actual platforms would be the long list of indicators that can be found. Some of the more well known indicators that one can find here are the moving averages, the relative strength index, the MACD, and the Bollinger Bands. There are a lot of others to pick depending on the strategy one decides to use.
Aside from the graph and the indicators, one will also notice that there are order types. There are basically two orders that one can choose from namely the buy and sell orders. Obviously, when he thinks that the price will go down, one will want to place a sell order. If he thinks that the price will increase, then he will want to buy at a low price to ride the uptrend. Also he has to do is place his order and he will start to trade.
There is also the very popular stop loss command which is a command that is used to manage risk. While there are some platforms in stocks that do not have the command, most do. If the trade of a trader goes the other direction, the stop loss prevents it from going too far down the drain.
Basically, these are some of the features of a platform. If one will work with simulators, the simulators have exactly all these features and even more. The difference is that the money used is fake or practice money, so one will not incur losses.
Simulators are just practice tools for people who want to perfect a strategy. One will start out with fake money given by the simulation platform. While one trades with fake money, he will be trading in real life real time market conditions so it will feel like he is trading for real. With this, one can actually get a taste of the real thing and practice on the real thing without spending money yet.
Of course, the first thing that one would ask himself is what exactly simulators are like and how to use them. In a nutshell, whatever one would find in a real platform is pretty much the same thing he will find on simulators. The first thing that he will notice would be a chart that shows the movement of price.
The graph also allows one to view it in a line form, a bar form, or a candlestick form. The candlestick graph is the most popular because it can show the most precise movements of the price. This allows the traders to know exactly how the price of the commodity moves so that he will know what move to make.
Another feature that is part of simulators and actual platforms would be the long list of indicators that can be found. Some of the more well known indicators that one can find here are the moving averages, the relative strength index, the MACD, and the Bollinger Bands. There are a lot of others to pick depending on the strategy one decides to use.
Aside from the graph and the indicators, one will also notice that there are order types. There are basically two orders that one can choose from namely the buy and sell orders. Obviously, when he thinks that the price will go down, one will want to place a sell order. If he thinks that the price will increase, then he will want to buy at a low price to ride the uptrend. Also he has to do is place his order and he will start to trade.
There is also the very popular stop loss command which is a command that is used to manage risk. While there are some platforms in stocks that do not have the command, most do. If the trade of a trader goes the other direction, the stop loss prevents it from going too far down the drain.
Basically, these are some of the features of a platform. If one will work with simulators, the simulators have exactly all these features and even more. The difference is that the money used is fake or practice money, so one will not incur losses.
Simulators are just practice tools for people who want to perfect a strategy. One will start out with fake money given by the simulation platform. While one trades with fake money, he will be trading in real life real time market conditions so it will feel like he is trading for real. With this, one can actually get a taste of the real thing and practice on the real thing without spending money yet.
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