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, or more popularly known as the chart, is the main tool that one will use in order to trade. One can choose between a line chart, bar chart, or a candlestick chart. Out of the three, the most widely used is the candlestick chart since it is the chart that gives the most precise movement of the price.
Included in the graph would also be a set of indicators that one can use in order to perfect his strategy. Some of the popular indicators that one can find here would be the moving average, the RSI, the MACD, the Bollinger Bands, and more. One can choose which set of indicators he can have on his chart.
Lastly, one will find the buy and sell orders that come with the platform. Simulators also have certain buy and sell orders since simulators will copy exactly how an actual platform works. Of course, if one would think that the price will go up, then he will be making a buy order. If he believes that the price will go down, then he will be making a sell order instead.
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.
So as one can see, whatever the actual platform has, simulators will also have. The features are pretty much exactly the same so one will have a taste of the real market. The big difference is that the money is not real.
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.
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, or more popularly known as the chart, is the main tool that one will use in order to trade. One can choose between a line chart, bar chart, or a candlestick chart. Out of the three, the most widely used is the candlestick chart since it is the chart that gives the most precise movement of the price.
Included in the graph would also be a set of indicators that one can use in order to perfect his strategy. Some of the popular indicators that one can find here would be the moving average, the RSI, the MACD, the Bollinger Bands, and more. One can choose which set of indicators he can have on his chart.
Lastly, one will find the buy and sell orders that come with the platform. Simulators also have certain buy and sell orders since simulators will copy exactly how an actual platform works. Of course, if one would think that the price will go up, then he will be making a buy order. If he believes that the price will go down, then he will be making a sell order instead.
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.
So as one can see, whatever the actual platform has, simulators will also have. The features are pretty much exactly the same so one will have a taste of the real market. The big difference is that the money is not real.
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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