Trading Simulators

A lot of traders have to share the same story of how they learned a lot about trading while in the process their account was destroyed. In opposite, learning can be fun while trading virtual using a trading simulator. This way a trader has an opportunity to figure out a profitable trading strategy that suits his/her personality without incurring financial losses.  Also, keep in mind that getting familiar with a particular trading platform often is a steep learning curve.  TD Ameritrade and Tradestation are probably the best among a few brokers having Trading Simulator facility.  

Virtual Trading is very similar to real trading when the underlying is a liquid stock or futures contract and you are not looking for tick scalping strategies.  For example,   AAPL  shares or  /ES  futures are good for virtual trading on time frames longer than 10-15 minutes.  Options strategies can be simulated as well.  Keep in mind, that in this case, the BID-ASK differential has a pronounced effect on the outcome of a simulation.

Real Trading,  however, will be always very much different because of the psychological aspect which can not be replicated in the Virtual Trading environment. No virtual trading record can account for the impact of financial risk in real trading. The inability to withstand losses can adversely affect actual trading results. Nevertheless, Virtual Trading will let you learn a lot about trading and you won’t lose any money.

1. Thinkorswim by TD Ameritrade

Think or Swim (TOS) virtual trading account by TDAmeritrade  can be registered for free with an email address only. TOS is one of the most advanced trading platforms. It was created by a group of professional option traders. TOS is very popular among the option traders. This trading platform includes:

• Stocks

• Options

• Futures

• Forex

• State-of-the-art  charting

• Customizable of studies and strategies

• Scanners for stocks, options, futures, and currencies

• Option analytics

• Backtesting

• Pairs trading

• Market awareness tools

• Conditional orders

• Trading alerts 

and many other advanced features. Date feed delay (20 minutes) was lifted after a phone call. 

TOS is A highly recommended trading platform for option traders.