Be the first to like this
Stock Trading Simulations
One of the ways to learn how to be a day trader is with stock trading simulations. Simulation trading can be done from the same trade station that you will be using to trade stocks live. Stock trading simulations give new traders the opportunity to learn and hone their skills at technical analysis of stocks. Trading programs hold vast amounts of past data that allow traders to do stock trading simulations based on real data from real markets. However, in the case of stock trading simulations you do not lose money. A risk of using stock trading simulations is that when you lose it does not hurt. That is the difference between live trading and stock trading simulations. Nevertheless, simulation trading is an important way to learn to trade.
Learning Trading Skills
Learning to use your trade station is a basic part of learning how to trade stocks. Basic skills include simply knowing what your trade station can do, what buttons to push, and how to find help when you need it. You can use stock trading simulations to learn the tools of your trade station. Then you need to learn to use the trade station to learn how to make money trading stocks. This is the world of technical analysis. Technical analysis works on the principle that history tends to repeat itself. Long ago in Japan when the Samurai were in charge rice traders recognized that certain price patterns not only kept repeating themselves but were also indicative of where prices would go next. These traders developed a pictorial system of symbols that they superimposed on price charts. These signals alerted traders to opportunities and risks in trading rice. Today this simple system and others based on statistical analysis of price patterns are in use for virtually all trading situations. In order to profit from the information that technical analysis provides one needs to learn the system and then apply it as performance art. It is not good enough to figure out what you should have done yesterday when you saw a signal. It is necessary to execute a trade in a timely as well as accurate manner in order to profit. Here is where stock trading simulations may be the most important. You can work to improve your knowledge base and you performance skillset without the risk learning from the experience of losing money!