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Forex trading simulator
Practice makes one perfect. A novice learn and slowly expertise on his work with regular practice. Even an experienced intellectual has to practice to further hone his skills. It is sort of simulation that needs to be performed before making any important decision. Practically, people tend follow a pattern while ultimately doing things.
Forex trading is one of the oldest and ever evolving businesses in the world. Forex trading is risky like stocks trading. People exchange currencies in an open market based on respective country's economic performance. The most commonly traded currencies are known as "majors". They are in pairs as currency trade is simultaneous buying and selling of two different currencies. They are EURUSD, USDJPY, USDCHF and GBPUSD. With the advent of new age software technology, every business is using it to leverage their processes. Software applications let officials make wise decisions. Their people work faster and business grows exponentially.
Forex trading simulator is one of the software that enables one to go back in time and buy or sell currencies. It feels as if everything is happening in real world. But actually, people play with virtual money. It indirectly saves a lot of money as people are confident while they go for actual forex trading. They decide based on their simulator experience. One can really loose lot of money if decisions are not based on good understanding and practice. Simulator also testifies one's strategic decisions made while buying and selling currencies. This is a tool to educate one to expertise on strategies applicable for real world forex trading. In general it takes nearly six months to fully understand all scenarios of the simulator and trading. The efforts must be disciplined and as guided by the program to get full out of the software.
Basic feature in currently available simulators is it allows user to log his trades using screen shots for further future analysis. This feature enable user to improve his trading performance. He can compare screen shots to evaluate his performance. He can add comments to a snap shot. Another feature is to draw fibonacci retracement, times zones, basic trend lines along with plotting multiple time frames. These are important to foresee trends and possibilities. There are various indicators like RSI, MACD, stochastic oscillator, CCI, moving averages, Darvas boxes and daily/weekly pivot points that can be used for analysis. Countries' economic data coming out as announcements or news is a big market mover. Forex Simulator software providers offer options to enable the software react to economic news announcements. User may subscribe to software data downloader. He can gain further knowledge on how currencies move on specific economic news flow. As he gets more familiar with the simulator, he starts understanding trading signals and recognizes patterns. This is a perfect tool advised to all who are starting as well as actively doing forex trading.
Not all applications are perfect for all users. With all exciting features, there are certain limitations to the currently available simulators. But, software does modify as need arise and with time simulator too will be a perfect one for all forex traders.