We’ve written several articles during the past about my relative distaste for e-mini trading simulators. I had an investment running on a sim account today and demonstrated to myself why We continue to assume that they are good for familiarizing yourself with a trading platform but relatively useless when learning how to trade. Will be you a simulator soldier? fusionex
I feel that almost any brokerage firm uses trading simulators to entice possible clients into sampling their forex trading platform. With that truth in mind, usually dealers have spent the right amount of time on trading simulators before they ever are subjected to me in the trading room. What is the real benefit for all this simulating trades? For me, not too much.
Inside my trading room, I normally trade my DOM up and trade a live account. Because of some changes suggested by my trusted accountant (I really dislike accountants when they do things like this), I am consolidating in number of accounts into single account at a brand new brokerage. Because it is a tiny block account, there is quite a lttle bit of paperwork and signatures to be collected throughout the move; so I have recently been trading in a v account in the trading room. I had a bad experience and it reminded me why simulators don’t provide the most realistic trading environment through which to participate.
It’s important to recognize that I was trying to trade the simulated account exactly the way I would operate my normal live consideration. I entered a control that immediately commenced to work against me and rather than exiting the company as I normally would, I thought I would supply the trade a little time to develop. That was mistake 1.
After i entered the trade industry was flat, but thankfully We were able to identify the actual when the market would tenderize and take a trade in the opposite direction. That was mistake 2. Of course, it was only a simulator trade; but like I said, I was trying to trade the simulator exactly the same way as I transact my live accounts. Following I entered the company the market moved to drawback and then placed up so that We thought was a much larger move down. My spouse and i did nothing. That was mistake 3. As the market moved against me personally, I was transformed from a specialist trader into a blithering trading hack. We moved my stops; I actually never move my ceases when trading a live account. I doubled down twice; I never two-fold down when getting smeared in a trade on my live account. Individuals were mistakes 4, 5, and 6. However received distracted talking to a person who stopped by my office and by the time I had developed finished I actually had lost $3500 of simulated money. Huge package, it’s just the sim. That is a problem.
And therein lies the rub. As the trade acquired no meaning, despite my best efforts to reproduce real trading conditions, my entire technique and 40 years of experience wilted under the lack of pressure. Yes you read that right; when nothing at all is on the series the teachings you learn seem to be to be ” light ” and seldom durable. Upon the other hand, when a mistake costs you a couple hundred money you tend to keep in mind that mistake and not repeat it.
I was shocked at the relatives ease I displayed in abandoning everything I realized about trading on this trade. Even though I had been determined to make this fake trading as reasonable as is feasible, my mind cared for it as superfluous and I traded like I’ve never been taught the thing about trading. It absolutely was also unbelievably embarrassing, We felt like an fool; so embarrassing that My spouse and i sent a private email to everyone within the room apologizing for my penoso trading exhibition. I just cannot get over how quickly my mindset altered when I was with this simulator compared to how sharp my mind keeps trading actual money. I suppose at some subconscious level that is the company has no meaning it doesn’t merit my full attention. I wonder who battle this problem?