If you are early in your trading endeavor, you most probably made your first trades on a simulator. In fact, if you plan on going live without practicing first, I highly recommend you to spend a couple of weeks on SIM. And just to let you know, there is no shame on being on the SIM, it’s actually quite smart.
If you read the first post of this blog, you know I plan on going live in 3 or 4 months. I will use this precious time to work on my strategies, make attempts but more than anything, keep learning on my own psychology. Truth is, that last element might be the most important one of them all and we’ll have plenty of time to discuss it in the upcoming weeks.
Right now, I wanted to give you a couple of tips if you want to optimize the time you’ll spend practicing on the SIM :
- Trade like you were trading your (real) money, take it seriously
- Don’t take a trade you would not take in real life (unless you are trying to develop a new strategy)
- Don’t trade unrealistic size, it’s useless and might push you to trade too big when you’ll go live
- Don’t overtrade; practice your discipline to trading less because trading less means earning more
- Keep a trading journal, even if you are on SIM : your goal is to practice for when you’ll be trading money so start the good habits now
The reason why I tell you those points is that we tend to neglect the importance of taking good habits early. It used to be my case. I was treating SIM like a practice but I was overtrading, using bigger and bigger size to try to cover my loss, etc. I was basically doing the opposite of everything I just told you and that made this period a big waste of my time. Don’t fall in that trap, be smart while you are living on the SIM.