Start Day Trading Safely with Simulations
Day Trading Using Simulations
Many would-be day traders hesitate to jump into the fray simply due to fear that their capital will disappear quickly. This may be due to a lack of understanding of day trading strategies or concerns that they may be misinterpreting market indicators. Their fear is not without justification. Uncertainty can make day trading novices wary of placing their first buy orders. Day trading’s very nature brings a few concerns to mind:
- Can you trust the information you have available?
- Will the online broker you’ve selected execute your orders correctly and promptly?
- Are there any hidden fees or undisclosed costs that will impact your gains?
- Do you feel confident with the tools that have been selected for evaluating potential buys?
- How will you continue to monitor your buys to know when the optimal time is to sell?
The solution to many of these questions is trading simulations. Just as the name implies the idea behind trading simulations is to allow potential investors a method of testing your trading prowess without risking any capital at all. Simulations have become the best learning tool available to prospective traders as you learn the ropes of day trading.
How Realistic are Simulations?
Trading simulations have become increasingly more sophisticated in recent years. Not only can you execute trades using true market information to test your results, many now facilitate back-trading so that clients can test strategy against real-life historical information to see if the strategy would have produced the desired results.
Day traders certainly need to take advantage of all the tools available to them and simulations are one that should not be ignored – especially for beginners. Combined with charting and analysis software that provide indicators to potential investors simulations can offer real-life results based on actual market activity.
Another important use of simulations is when an experienced trader wants to validate and test a new strategy for specific markets or to see how results would have been impacted in the past with managing their trades differently. Simulation tools can allow you to go back to a certain point in time and even fast-forward to see how your strategy would have worked for you over time. Some will even allow you to create your own market conditions to verify what your results would have been under varying conditions. Simulations offer many benefits to day traders:
- Learn the basics of day trading before investing
- Hone your strategy or test a new approach without risking capital
- Determine whether your understanding of analysis and trends is correct to formulate a strategy
- Tools available for multiple markets including forex trades with historical data for analysis
- Cost-effective – some brokers offer free use by clients that have a broker account balance. For others the cost is generally worth the value and the ability to validate strategies without risk.
Consider your options when selecting a simulation tool. Capabilities and costs can vary considerably. There’s no benefit in purchasing more functionality than you need for your particular trading activities.
Getting Started with Day Trading Simulations
Simulation software is a valuable education and reinforcement tool that allows you to get comfortable with your day trading strategy and fine-tune your understanding of the investing indicators that are most relevant to you. Of course there are up and down sides of using simulations:
Up – you can’t lose any capital
Down – you can’t make any gains
SureTrader is a leading online broker offering the latest in technology and services to clients. Real-time stock tickers are available to monitor your stock activity. Tools are also available for analysis of stock activity and trends to provide the knowledge and up-to-the-minute information that gives you an advantage over other online brokers. Our expert support staff is friendly and courteous in providing assistance to clients. SureTrader clients have global access to information from exchanges in a wide diversity of markets.
SureTrader’s high-performance execution of your trades results in the optimum level of accuracy of your trades for a competitive advantage. Desktop and mobile applications ensure timely and flexible access to SureTrader services – smartphone access is provided for both iOS and Android platforms. SureTrader investors benefit from use of our services to execute trades quickly and efficiently even in after-hours trading.
Contact SureTrader right away to get started doing online trading with the best in online brokers.
Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.