The financial markets such as the stock market, commodities market, or the forex market are great ways to earn money but also great ways to lose money if one does not know what to do. While one might be scared to put in real money because one is afraid to lose it, he still has to practice on the real thing in order to really learn. One of the ways that one can address this problem is to practice on a day trading simulator instead.
For those who are not too familiar with how the financial market works, they would most likely want to know what features are included in simulators. In a nutshell, simulators have whatever the real stocks, indices, and forex market would have. When one would enter the market, the very first thing he will see is a graph.
The graph also allows one to view it in a line form, a bar form, or a candlestick form. The candlestick graph is the most popular because it can show the most precise movements of the price. This allows the traders to know exactly how the price of the commodity moves so that he will know what move to make.
Another feature that is part of simulators and actual platforms would be the long list of indicators that can be found. Some of the more well known indicators that one can find here are the moving averages, the relative strength index, the MACD, and the Bollinger Bands. There are a lot of others to pick depending on the strategy one decides to use.
Also, one can have the choice to place certain orders. In most platforms of securities, stocks, indices, commodities, and currencies, there are order commands to look at. There is the usual buy and sell order wherein one will immediately enter a trade betting for or against the increasing in price of a commodity. When one sees that the commodity reaches the price that he wants, he can either buy or sell.
Aside from those commands, there is the most wide used command known as the stop loss. This happens to be one of the most used commands since it can literally stop a loss. If one sets a stop loss and his trade goes wrong, then the stop loss stops the trade before one loses too much.
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.
Simulators are just practice tools for people who want to perfect a strategy. One will start out with fake money given by the simulation platform. While one trades with fake money, he will be trading in real life real time market conditions so it will feel like he is trading for real. With this, one can actually get a taste of the real thing and practice on the real thing without spending money yet.
For those who are not too familiar with how the financial market works, they would most likely want to know what features are included in simulators. In a nutshell, simulators have whatever the real stocks, indices, and forex market would have. When one would enter the market, the very first thing he will see is a graph.
The graph also allows one to view it in a line form, a bar form, or a candlestick form. The candlestick graph is the most popular because it can show the most precise movements of the price. This allows the traders to know exactly how the price of the commodity moves so that he will know what move to make.
Another feature that is part of simulators and actual platforms would be the long list of indicators that can be found. Some of the more well known indicators that one can find here are the moving averages, the relative strength index, the MACD, and the Bollinger Bands. There are a lot of others to pick depending on the strategy one decides to use.
Also, one can have the choice to place certain orders. In most platforms of securities, stocks, indices, commodities, and currencies, there are order commands to look at. There is the usual buy and sell order wherein one will immediately enter a trade betting for or against the increasing in price of a commodity. When one sees that the commodity reaches the price that he wants, he can either buy or sell.
Aside from those commands, there is the most wide used command known as the stop loss. This happens to be one of the most used commands since it can literally stop a loss. If one sets a stop loss and his trade goes wrong, then the stop loss stops the trade before one loses too much.
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.
Simulators are just practice tools for people who want to perfect a strategy. One will start out with fake money given by the simulation platform. While one trades with fake money, he will be trading in real life real time market conditions so it will feel like he is trading for real. With this, one can actually get a taste of the real thing and practice on the real thing without spending money yet.
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