Simulated Day Trading vs. Real Day Trading
Have you ever considered day trading? Or, if you are already an active day trader, do you remember when you first started? Active traders often mention the thrill and excitement of trading, balanced by the uncertainty and hope for profits. Trading often provides a rush that is difficult to put into words.
For those of you who are thinking about starting to day trade, a first logical step is to develop and stick to a trading strategy. One way to develop a strategy is to practice trading on a simulated trading platform. Simulated platforms allow you to gage how you might perform in a real life trading scenario. Now, granted, there is a psychological component that is missing in a simulated environment as you are always aware you are not risking your actual capital. The best thing you can do in a simulated environment is to trade as you actually expect to do so in the real world and understand the technical limitations/differences between trading live and trading in a simulated environment. This might help you learn your behavioral patterns and practice sticking to your strategy.
Once you’ve got a good feel for how you and your strategy might work, the next thing to do is to start trading live. Start small. Remember, a triathlete did not begin their career with the ironman triathlon in Hawaii. Build up over time by learning how you and your strategy work in tandem in a live trading environment. An athlete will go through highs and lows, experience euphoria and disappointment on their journey as will a new trader. Yet, for those who are successful the work will all be worth it in the end.
Please note that any simulated trading results will be impossible to replicate in a live trading scenario. Not only are simulated and live trading environments different, but as you may have heard before, “past performance is not indicative of future performance”. To try any one of our Cobra Trading demos, visit www.cobratrading.com and click on “test drive”.