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.
Now, before discussing what simulators are like, it is important to know what a real account is like. In most stocks, futures, or forex investing platforms, there will usually be a graph. The graph will show the movement of the price of the commodity and how it goes on an hourly, daily, or weekly pattern.
Now, when one will take a look at the graph, there are three main types that he can choose from, the line, bar, and candlestick. The candlestick graph is by far the most used because it is the most precise. It can show the details of how the price moves which is why a lot of seasoned traders love using it.
Aside from that, one will also have access to a lot of indicators that can help one create his strategy. He can check out a lot of popular indicators here such as the MACD, the moving averages, and the RSI, all of which are very helpful when it comes to doing the trade. Of course, there are a lot more to choose from too.
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.
Aside from the normal buy and sell orders, there is also the popular stop loss command that literally stops a loss. One will usually set his stop loss in a price zone that goes opposite of his believed trade. The stop loss will automatically stop and close his trade at that certain price before his losses get too much.
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.
These simulators are there for the whole purpose of practice since one does not have to risk anything. One will get a sum of fake money which will be used in the simulators. These simulators will then emulate real market conditions so that one can be able to trade like he is trading in the real market with real conditions but with fake money. Because of this, one can try out as many strategies as he can before he goes to the real thing.
Now, before discussing what simulators are like, it is important to know what a real account is like. In most stocks, futures, or forex investing platforms, there will usually be a graph. The graph will show the movement of the price of the commodity and how it goes on an hourly, daily, or weekly pattern.
Now, when one will take a look at the graph, there are three main types that he can choose from, the line, bar, and candlestick. The candlestick graph is by far the most used because it is the most precise. It can show the details of how the price moves which is why a lot of seasoned traders love using it.
Aside from that, one will also have access to a lot of indicators that can help one create his strategy. He can check out a lot of popular indicators here such as the MACD, the moving averages, and the RSI, all of which are very helpful when it comes to doing the trade. Of course, there are a lot more to choose from too.
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.
Aside from the normal buy and sell orders, there is also the popular stop loss command that literally stops a loss. One will usually set his stop loss in a price zone that goes opposite of his believed trade. The stop loss will automatically stop and close his trade at that certain price before his losses get too much.
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.
These simulators are there for the whole purpose of practice since one does not have to risk anything. One will get a sum of fake money which will be used in the simulators. These simulators will then emulate real market conditions so that one can be able to trade like he is trading in the real market with real conditions but with fake money. Because of this, one can try out as many strategies as he can before he goes to the real thing.
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