Simulators are certainly interesting, but it's really up to you how valuable they are. If you give someone $100,000 for a simulator and they toss it in X Y Z stocks and come out ahead, you have to look more-so as to the underlying reasons why they chose those stocks. Was it just at a whim? Did they do their research and to what lengths? Were they just familiar brands that "sound good?" Simulators are useful if you're willing to test your math, charting abilities, and what not. However, they're not terribly useful for other methods.
Unfortunately I haven't really got to testing Metatrader 4 I also have a question: Will this help those who want to do trading, and those who want to do more long-time investments? The simulator is in real time, right? And it picks up information from the actual markets, right? If so, you need to work the simulator for at least a month or so, to come out of it with some really valuable information, correct?
Exactly. But when you start, start really small. The problem when you use fake money, is you will do things which you normally would not do. The best example is poker, playing poker if you are not playing for money is pointless. Also unless there is money on the table you will not face the same stress as when you know it is just chips. So when people play poker for fun, they will make bets which they normally will not do. This changes the entire game.
They are useful testing grounds for learning techniques and considering strategies. And it's important to know what you are doing before you use your real money. But using real money and applying real emotion makes it a different story when you are properly trading. I would suggest that you try simulating it as if it really is your money - i.e. don't make trade sizes bigger than you would do in real life, and adhere to stop losses and target prices you would do in the real world.
In real life there is no start over button. Simulators are great for learning techniques or learning new ideas or concepts, but the main reason they do not compare to the real thing is that when you lose, you don't get hurt. This holds true for any sort of simulator whether it is stock market training or a airplane simulator. Some of the airplane simulators are just as real as actually flying an airplane, the ones used to train pilots can even simulate turbulence and all sorts of things. But when you are landing the plane, if you crash, nothing happens
I think these kind of simulators can serve a purpose, especially for somebody who is relatively new to investing in the stock markets, but I certainly wouldn't pin all my hopes and invest everything I've got on the outcomes of these. I think that can be used as a guide only, and if what the simulator says, goes against every other price of advice, I'd be very cautious about what they are predicting.
I think anyone new to investing who is investing or trading in such a manner that it could be compared to flying a plane in terms of risk and skill and attention required is making it too complicated and taking far too much risk.
I do think it's best to practice first before engaging in the real thing. As they say, "practice makes perfect". It's good to take advantage of free training sites before investing in trading real time. I myself am a beginner when it comes to trading in stocks and joining this forum has given me the information I need before actually investing.
