At DayTradeSafe we teach our students how to enter rules-based trades and effectively manage and exit those trades. We are proud to turn out benchmarked professional traders. One of the hard and fast rules of our program is to never trade with you own money until you have mastered day trading in simulation. What you will be looking for in a day trading simulator is a free application as part of your day trading platform that provides real historical data for practicing day trades. What is the best day trading simulator?

Simulated Day Trading

Simulated day trading is a way to practice buying and selling commodity futures, stock, or foreign currencies without any monetary risk. Typically, a novice trader begins with a fund of virtual money with which to practice. They choose and execute trades based on real historical data and experience, in their virtual account, the results of their trades. This approach lets the beginning trader practice the execution of trades while getting used to the technical features of the program. They can test different strategies and compare results.

Real Time Day Trading Simulator

In addition to working with real historical market data for trading commodity futures, stocks, or foreign currencies, a day trading simulator can allow you to trade with real time, level 2, market data from the New York Stock Exchange and Nasdaq. By doing this the day trading simulator allows the person to include current news and events in their trading decisions just like they will when they are finally ready to go live and trade with their own funds.

Best Stock Simulator for Day Trading

At DayTradeSafe we recommend the NinjaTrader platform and its day trading simulator. By allowing the novice trader to utilize historical and real time market data he or she can safely approximate real life trading scenarios and the results of their trade strategies and trade management. As we routinely advise our clients, the trader needs to develop structured trading methods and exercise discipline, especially in chaotic trading environments. Working with an advanced trading simulator will help in obtaining this goal.

Practice Day Trading Simulator

The usefulness of a day trading simulator extends beyond training for the novice trader. Many times during the course of normal day trading, an experienced trader wants to test a new strategy or modify their usual approach to trading. Simulation in day trading allows the trader to do this with no monetary risk while they continue with normal trading. Then they can introduce a new approach only after having thoroughly tested it with historical data and real time trading simulation.

Crypto Day Trading Simulator

If you are interested in day trading cryptocurrencies, it is advisable to work extensively with a day trading simulator before going live. We are currently in the depths of a crypto winter that has both driven prices down and created an extra degree of volatility and risk. Trading Bitcoin futures or mini futures or options on these allows one to test these waters without excessive risk. But there is risk with things like lots of Bitcoin wash trading that distorts market volume data and makes technical analysis suspect. Do not go live in crypto trading without lots of simulation trading beforehand!

Free Day Trading Simulator App

There are many free day trading simulator applications. You need only go online and pick one. However, many offers are not really free but limited trials that end when you do not pay for their product. Our belief is that since you intend to day trade that you should investigate day trading platforms, including the day trading simulator functionality that they provide. Then choose and use what will work for you. The old saying that applies here is that get what you pay for. However, with the right platform and trading simulator you are more likely to be successful and that success will pay for your platform and day trading simulator many times over.

Online Day Trading Simulator

When choosing a day trading simulator it is wise to look for one that offers both offline and online simulation trading. Old market data can be stored offline and one can use this when the market is closed to hone one’s trading skills and learn to navigate the technical aspects of the program. Online trading is useful as it more closely approximates live day trading with attention to current events and the news. In both cases, it is important to develop and follow a measured approach and exercise discipline in your day trading.