So you want to become a trader?
And you have a trading strategy?
Ready to start trading and making a lot of money?
I know how exciting it is to start trading, trust me!
Of course, you hope to make money. But let me tell you:
Losses are part of trading.
You will have winning trades, and you will have losing trades.
So how can you ensure that you make money in the long run?
Did you know that is it possible to start trading without risking a single penny?
Yes, it IS possible… by using a Trading Simulator!
And by all means, you MUST use a trading simulator before you start risking real money in the markets – especially if you are a beginner.
Here are some “Do’s” and “Don’ts” when using a trading simulator:
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First “Do”: Take your simulated trading seriously!
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The reasons for this are simple.
Think about it this way: If you want to become a pilot, you would practice in a simulator first.
But if you don’t take it seriously and crash every single time, do you really think they will ever let you fly a real plane?
Of course not!
In addition, you are not learning anything!
You want to treat your practice serious so that you can learn from your successes, and also from your mistakes.
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First “Don’t”: Don’t treat your stock trading simulator like a game!
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This implies that you treat it in the same way as you would treat your real account.
As an example: If you plan to start trading with $10,000, treat your simulated account in the same way, even if there’s $50,000 in your simulated account. You want to mirror your real conditions as closely as possible.
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Second “Do”: Live through the good, the bad and the ugly!
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You really need to do this since losses are part of trading, and you need to experience them.
Write down your feelings when you experience a streak of losses. And experience how you climb out of the hole.
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Second “Don’t”: Reset your account after a few losses!
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When using a trading simulator, you can simply “reset” the account after a few losing trades and pretend it never happens.
But this way you will never experience the up and downs of trading. And you won’t be able to “reset” your real account either!
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Third “Do”: Take at least 40 practice trades!
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You really need to do that because if you take less than 40 trades, you will won’t have any reliable numbers.
Let me give you a real-life example:
As I am writing this, our Binary Options Signal Service produced 10 winning trades in a row.
If you would evaluate the strategy right now, you would say “It has a 100% winning percentage.”
And that is true for the past 10 trades, but not in the long run. You need to have at least 40 trades to know what you expect when trading a strategy. 40 trades is the minimum amount of trades that you need for statistically relevant results.
Anything less, and you might not look at the numbers at all.
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Third “Don’t:” Don’t judge a trading strategy too quickly!
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What you should do instead will be to trade it in a simulator over a longer period of time – at least 4 weeks. I know: It’s tempting to jump into trading right away.
I once was impatient, too, and started trading with real money without thoroughly testing the trading strategy on a simulator first.
And guess what happened? – I lost money because the strategy was flawed and I didn’t realize it.
If I had traded it on a simulator for a few weeks, I would have discovered the flaw and saved a lot of money.
Now you are able to improve your likelihood of successes with using a stock trading simulator.
All you need to do will be to take notice of the do’s and don’t’s established above.
Do the “do’s” and don’t do the “don’t’s!”
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