Emini Trading: How To Effectively Learn Trading Using Simulators?

By Author: Francisco Mandelbaum
Total Articles: 28
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It is better if a trader learns to trade on a simulator before entering the real trade. Getting well versed with trading environment does help in keeping emotions in check while trading and make profits. A trader who is high on theory, but low on the practical skills will suffer.

During the last decade of trading, emini trading has gone through many changes. The changes affecting the trade have mostly been driven by technology. Rapid growth of information technology has resulted to trading in emini stock being an online venture rather than being a physical market. The changes have affected the real emini market as well as the supportive structures used during the trade with the main impact being felt in the use of simulations as a medium for learning the trade. Simulators are becoming quite popular for new entrants and also skilled traders wanting to try out something different. The virtual market scenarios offer an emini trader the following advantages:

Interactive

Simulators provide a virtual representation of the real market. It would consist of how the market looks like and how it works. It would use ...
... the same trading parameters as those used in the real market. An emini trader is therefore able to hone his trading skills in preparation to enter the real market. Simulators are never limited in scope hence a trader has an option of making any kind of move without any restriction from the simulator. For instance, a trader might decide to go overboard in trying to find the impact of doing so hence learning from the gain or loss made at that point of time.

Different Simulators

A trading resource would offer a trader a range of simulators to choose from with each simulator coming with specific specifications to suit a certain market or a specific market option. There are simulators which are designed to represent an emini futures trading, emini contracts and binary options among other financial instruments. The simulators are provided by traders who have been in the market for many years hence possess a lot of skill and knowledge in regard to the emini trade.

Analytical

Using simulators is more than just having a rough or basic idea about the trading scenario. The exercise would allow the trader to critically analyze all the moves made during a trade and how best to combat the situations. Simulators are programmed to maintain a record of data based on simulation analysis which will provide different statistics based on specific as well as general performance. Information available from the simulator will include the number of losses or gains, value of stock traded, number of stocks traded, average profit or loss, percentage of gains or losses, time series analysis and also the trend of the trading on a daily, weekly or monthly basis.

Adaptive

Simulators offer more than a replica of the real market. A trader can also use the simulator to trade in the real market hence applying the winning strategies used during simulation in the real market. By using the simulator to trade in the real world, an emini trader will find it easy to adapt to the new market in a more user friendly and convenient manner since every aspect is made to fit into the trading he is used to.

Author of this article enjoys listening to the CFRN Emini Futures Live Market Commentary each day and also watching the CFRN Professional Emini Traders place live trades in their Live Emini Trading Room.