Thanks for all the resources and knowledge that you share with the public.
My 8:00 to 5:00 job makes it tough to find screen time and when I do, I often hesitate on entries. Google finds a long list of trading simulators, but could you offer a suggestion or two?
We use LightSpeed’s simulator for equities. We have a proprietary simulator loaded with specific plays which can be used to practice. We fall in line with Dr. Steenbarger who has written you should not trade live until you are profitable on a demo. Even when our live traders struggle they may be placed on the demo by the Floor Manager or their Mentor. What simulators have you used that you would recommend for SMBer Brian?
Mike Bellafiore
Author, One Good Trade
7 Comments on “Choosing a Day Trading Simulator: Need Help?”
I have tried https://tradingsim.com/ and they have a decent simulator.
Make an account with thinkorswim and download the software, the paper trade is fantastic
Just like af said. Using thinkorswim lets you papertrade at will with an unlimited demo account (I have been using it for 2 years before I finally funded it). However, when papertrading, the tape is delayed (20 minutes or so).
Another big advantage is that there is a “replay” feature for funded accounts. You can choose any date from late 2009 up until 2 days ago and replay any instrument on it. It even has level II. Great tool, especially if you have a day job.
If you are an index trader, I would recommend taking a look at NADEX exchange (no affiliation) because they allow one to use binaries as low as $50 per trade or trade spreads with limited risk and $10 per point. I’m an expert (sim) trader and would recommend this route over sim trading if your style is sufficient for that. The most important thing is that your sim and real environment is 100% the same and that means same capital, same risk, same everything.
A lot of people lose money when going from sim to live because they try to reduce risk which typically is a losing proposition.
It is important to distinguish between sim trading and games. Real sim trading is a lot different then a game. To that end, I would recommend picking a starting capital and sticking with it for at least a year. I would recommend that you choose a simulator that has a good statistical and record keeping ability, as well.
Your sim should match your live trading environment. Most web sims are not sufficient for high frequency intraday trading. So you’ll need to factor that in, as well. There are plenty of professional software that provides realistic simulation.
I would also add that I would recommend to take off a few large orders with real money, something that will make a difference. Even if you have a lot of experience with those patterns or systems, you will think of 10x of as many ideas when there is significant risk. You can then take these ideas back and work on them, use them for inspiration
If he is really new to trading and doesn’t want to daytrade (you could, but it is a lag of 20 minutes) he could try the simulator on http://www.investopedia.com; it helped me a lot.
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