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Differences Between Simulated and Real Trading

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For the last two months, I've been trading ES contracts with Think or Swim's Papermoney simulator. I'm ready leave the kiddie pool and try wading in the shallow end trading single contracts for real money. I am opening an account with Tradestation, and I'm wondering what differences I should expect? Will I experience slower execution? Slippage? Both? The simulator sometimes seems too good to be true...which leads me to believe it is. Any help on being mentally prepared for the frustrations I'm likely to experience would be welcome!

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When I switched from ninja sim to ninja live there was no discernible difference on NQ and ES.

 

Glad to hear that. I have been Ninja sim trading for a few months now and getting close to going live.

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I began trading live today, and I found a very immediate difference...namely that in simulated trading a buy order is filled on the bid and sell orders are filled on the ask whereas the reverse is true in live trading. Pretty big difference! :haha::( Don't I feel silly.

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For options, you have hidden quotes. Market makers having script to trigger orders close to bid/ask, so I never pay the displayed price. I never tried ES and such though (moving too fast for me :)).

 

Oh and also, stress level is way different, but you are most likely already aware of this :)

 

Happy trading.

Jeremy

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For options, you have hidden quotes. Market makers having script to trigger orders close to bid/ask, so I never pay the displayed price. I never tried ES and such though (moving too fast for me :)).

 

Oh and also, stress level is way different, but you are most likely already aware of this :)

 

Affinity

 

Thanks for your comments, Jeremy. I did indeed find that the stress level is very different. Knowing it will be different, and experiencing the difference are very far apart.

 

As for the ES, I find that the tape also moves much more quickly and erratically on with Tradestation than with Thinkorswim. It felt like chaos, like gambling. Not where I want to be.

 

Is there something else you like to trade? Are there other financial futures that move more slowly, that would be good for beginners?

 

For the moment, I'm back to paper trading. I donated 2.5% of my funds yesterday. Expensive way to learn, but learn I did.

 

Gabriel

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For the last two months, I've been trading ES contracts with Think or Swim's Papermoney simulator. I'm ready leave the kiddie pool and try wading in the shallow end trading single contracts for real money. I am opening an account with Tradestation, and I'm wondering what differences I should expect? Will I experience slower execution? Slippage? Both? The simulator sometimes seems too good to be true...which leads me to believe it is. Any help on being mentally prepared for the frustrations I'm likely to experience would be welcome!

 

Mentally prepared .... accept those losses as part of the process. You need them to learn how to lose properly, quickly, and get ready for the winner. In addition, there is going to be more pain when you see the money go out of the account. So, try not to look at it as a daily process. It is the weekly and monthly that really counts. If you are positive at the end of the week, 3 out of 4, then you will be positive at the end of the month. Don't get too frustrated if your broker makes more in commission than you do in profits for the first few months. If you are positive...even 3% those first couple of months, it is still a good beginning. Concentrate on consistency, not profits. If your approach is sound (bigger winners than losers just to keep it simple) then consistentcy will make it work. As you get better it will become exponential as you add leverage.

So, good luck! Watch out for the rest of us who are out to get your money:fight:

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Is there something else you like to trade? Are there other financial futures that move more slowly, that would be good for beginners?

 

Gabriel,

 

I don't trade futures :) Is that simple. I trade options on index and such. I have a crappy web interface broker, I trade while at work occasionally when I spot an opportunity mainly. But I didn't say I was successful at it! One book I found of tremendous help is Memory of a stock trader operator... a classic!

 

Jeremy

Edited by Soultrader
spam

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Thanks for your comments, Jeremy. I did indeed find that the stress level is very different. Knowing it will be different, and experiencing the difference are very far apart.

 

As for the ES, I find that the tape also moves much more quickly and erratically on with Tradestation than with Thinkorswim. It felt like chaos, like gambling. Not where I want to be.

 

Is there something else you like to trade? Are there other financial futures that move more slowly, that would be good for beginners?

 

For the moment, I'm back to paper trading. I donated 2.5% of my funds yesterday. Expensive way to learn, but learn I did.

 

Gabriel

 

Pick a market and stick to it. Don't bounce around because it won't help. You need to become a maser of es or any other vehicle you trade. It's a lot harder to master more than 1.

 

Think of it as you being the new fish in a pond and nature's laws are at work. How do you eat without getting eaten?

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Yeah with Sim...you have to try and mentally treat it as the real thing...like when one practices and sport it is best to simulate in ones mind the goal of the sport...

So discipline and attitude are key here...

 

You have to go into Sim trading with a setup in mind , if you dont then you are just swinging in the breeze and will quickly "play" with it and then lose interest and then you will get restless and go live and then Bam !! you will lose...

 

Good luck..

Best

John

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"So, good luck! Watch out for the rest of us who are out to get your money"

 

Those comments are quite disturbing, the stock market it not a fighting/war arena (although it may be quite intense sometimes). It's also a place where risks are taken and insured.

 

Both parties involved in a deal can be perfectly legitimately happy even if it means one party "lost" money. One party agrees on taking a risk and the other party is happy that that other party is taking that risk. The same way your insurer is happy to take your money to cover you with a risk and you are happy that your risk is covered.

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