I’ve written several articles in the past about my relative distaste for e-mini trading simulators. I had a trade running on a simulator account today and proved to myself why I continue to believe that they are good for familiarizing yourself with a trading platform but relatively worthless when learning to trade. Are you a simulator warrior?I think that just about every brokerage uses trading simulators to entice prospective clients into sampling their trading platform. With that fact in mind, usually traders have spent a good deal of time on trading simulators before they ever come in contact with me in the trading room. What is the real benefit of all this simulating trades? In my opinion, not too much.In my trading room, I normally trade my DOM up and trade a live account. Because of some changes suggested by my trusted accountant (I really can’t stand accountants when they do stuff like this), I am consolidating in number of accounts into single account at a new brokerage. Because it is a small block account, there is quite a bit of paperwork and signatures to be collected during the move; so I have been trading in a simulated account in the trading room. I had a bad experience and it reminded me why simulators don’t provide the most realistic trading environment in which to participate.It’s important to realize that I was trying to trade the simulated account exactly the way I would trade my normal live account. I entered a trade that immediately began to work against me and instead of exiting the trade as I normally would, I thought I would give the trade a little time to develop. That was mistake 1.When I entered the trade the market was flat, but fortunately I was able to spot the point when the market would break down and take a trade in the opposite direction. That was mistake 2. Of course, it was only a simulator trade; but like I said, I was trying to trade the simulator exactly the same way as I trade my live accounts. After I entered the trade the market moved to the downside and then set up for what I thought was a much larger move down. I did nothing. That was mistake 3. As the market moved against me, I was transformed from a professional trader into a blithering trading hack. I moved my stops; I never move my stops when trading a live account. I doubled down twice; I never double down when getting smeared in a trade on my live account. Those were mistakes 4, 5, and 6. Then I got distracted talking to somebody who stopped by my office and by the time I had finished I had lost $3500 of simulated money. No big deal, it’s just the simulator. That is a problem.And therein lies the rub. Because the trade had no meaning, despite my best efforts to simulate real trading conditions, my entire technique and 30 years of experience wilted under the lack of pressure. Yes you read that right; when nothing is on the line the lessons you learn seem to be superficial and seldom long lasting. On the other hand, when a mistake costs you a couple hundred bucks you tend to remember that mistake and not repeat it.I was shocked at the relative ease I displayed in abandoning everything I knew about trading on this trade. Even though I was determined to make this fake trading as realistic as possible, my mind treated it as superfluous and I traded as if I’d never been taught the thing about trading. It was also unbelievably embarrassing, I felt like an idiot; so embarrassing that I sent a personal email to everyone in the room apologizing for my deplorable trading exhibition. I just could not get over how quickly my mindset changed when I was on this simulator compared to how sharp my mind stays trading real money. I guess at some subconscious level that is the trade has no meaning it doesn’t merit my full attention. I wonder how many people battle this problem?
Do You Think Practicing on Trading Simulators Is a Good Use of Time? Check Out the Mess I Made Today
Mar 31 2022 Published by admin under Uncategorized
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Give a Chance to Binary Options Trading This Season
Mar 24 2022 Published by admin under Uncategorized
Binary options trading has a lot of rumors and controversy around it, but it is, in fact an easier and enjoyable form of trading. Especially if a person is new to the world of trading, as this is easy to understand. In binary options trading, a trader bets on stock and either earns money if it matches within a certain amount of time or loses it. That is why it’s a risky but equally exciting way of earning money. There are just two options of ‘yes’ or ‘no,’ hence the name binary.
If the stock price does not fall on the correct side of the strike price within the expired time and date, then the trader loses the money. But if it does fall on the correct side, the trader gets a profit.
For example, if a stock is trading at $60, the binary option has a strike price of $65 and expires at 12 pm the next day. The trader can buy the option for $50. If, after the expired time, the money goes above $65, say at $100, then the trader gets a profit of $50 (100 – 50). But if the money falls below $65, that is, it’s out of money, then the trader suffers a loss. Either way, it is good for practicing day trading as it helps in building an accurate intuition.
Another important part of binary options trading can ensure that the trader is not getting into any scam sites. This is because there have been cases of the trading system being rigged and the company profiting from all the activities. That is why a binary options broker is essential for the trading to be legit. Brokers help manage the amount, and they also do not take any commission for a trade that ended in a draw. Brokers are necessary for any trading because whatever profit the trader earns from trading will be their own wealth. There are no cuts from the amount, except for the commission the broker gets. But the majority of the amount goes to the individual.
Here are some of the benefits of having a brokerage account and a stockbroker:
· Trade with many companies – The person can place their options on any stocks that the broker has access to. And this may be every company listed in the New York stock exchange or Nasdaq stock market.
· Individual and independent trading – With brokers, an individual has direct access to the foreign exchange in stocks. That gives the independence to invest in international stocks and decide the stock selection.
· One-time money management – Many brokers understand the importance of other investments like bonds, mutual funds, and bank account products. Hence the broker lets the trader get a single environment that can take care of all this, letting the person have a simplified path to money management and not have accounts spread out for different investments.
· Customer service – Brokers also give financial advice that goes beyond finance or trading. Every broker has a different form of service, but working with a broker will also help get different resources for better managing the finances.
An ideal broker has many features that can be attractive depending on the facilities. Like the forex brokers. We offer an attractive number of options for both binary trading and day trading. The Forex education can also help in getting you educated on the basics of trading. And the binary options brokers can help you get the most profit from the trading. Do check us out. We will not disappoint!
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