I can’t emphasize enough the importance trading for practicing before even thinking of trading for real. If you plunge headfirst into a large pool full of relentless experienced day traders waiting for you throw tons of money for stocks that you’re clueless about, then you’ll end up hurting yourself pretty bad trust me. Education is the key to succeeding.
Day trading simulators do exactly that. They allow you perfect your trading skills all while you assimilate the mechanics driving the market you are trading. Whether you are trading Forex, futures, currencies or options, day trading simulators will help you learn and practice ordering entries and exits in addition of stop orders and limit orders as well. Trading simulators relieve the stress of a likely financial loss and allow beginning traders to focus on learning day trading at their own pace.
New day traders using trading simulators are recommended to keep a trading journal where they put all of what they’ve learned from their mistakes. There is no better way of progressing than by making mistakes. If you make mistakes and you use a simulator, then it will cost you nothing. It’s exactly the reason why day trading simulators have been invented for. So use it on your behalf.
Note that you should not be paying for a simulator. There exist plenty of free simulators out there that provide the same functions that you would be using if you were trading for real. Good simulators should feature single click trading, charting, market replay simulated trading, OCO orders, advanced technical analysis, trading alerts, live customer support and trading videos and webinars. So choose your day trading simulator wisely.
The bottom line is, the more experience you have, better are your chances of succeeding and ultimately make money from trading.
Once you have become comfortable with your trading and you have practiced it extensively using a simulator, you can fund your account and start trading for real. It is not recommended, however, to deposit a too small amount of money as it will mean that you’re scary of losing your initial investment, and as long as you’re not confident in your trading, you’re better off of pursuing your trading apprenticeship all while accumulating funds for your starting capital. So please go for an day trading simulator first.