Sim vs Real Money Trading

Discussion in 'Psychology' started by John9999, Oct 12, 2018.

  1. John9999


    okay. After going back to SIM. Trading for a month and getting back my confidence I am ready to start real trading again next week.

    Of course in SIM. I am killing it. Of course this week I would have made big profits.
    But of course real money results are never as easy as when it’s not for real.

    There’s tons of articles on this. Obviously it’s the emotions of real money at risk.

    My first goal as I go back I to real trading is not to make money. My number one goal is to execute my strategy to plan. No deviations. I want to be robotic.
    SimpleMeLike and fan27 like this.
  2. RedDuke


    Very simple then, automate and let algo make all decisions. Algos have no emotions.
  3. themickey


    Very good. :)
    Reward yourself for following your plan maybe, a bit like providing yourself a birthday present.
    You need your brain to feel good for obedience and a growling at if you deviate. :)
    John9999 likes this.
  4. Dude, do you think people lose money on real account because of emotion?
    People believe they do well on demo because they don't lose REAL money.
    They randomly leave A few positions open and wake up next morning, finding that position is earning over $1,000. That's called illusion dear, not skills

    When it comes to trading, what matter is whether you understand the behavior of market makers whether you are on sim or real

    Having said that gl dear

    dozu888 and CALLumbus like this.
  5. Peter10


    to be able to replicate your success on sim to a real account, you should have a trading plan and rules. Let there be a rule that will determine all your trading actions. If you can do that, then the emotional trading will be eliminated on live trading and you will be able to make money on real account as you do on demo account.
    John9999 likes this.
  6. wrbtrader


    I've seen a a lot of traders that did well in simulate trading (trade journals here are litter with them) and than do poorly in real money trading because they would watch their profit/loss screen instead of minimizing that screen to minimize the impact of being sucked into emotional trading especially when volatility shows up.

    Using stop protection, limit orders and such gives some protection against emotional trading that tends to show up in real money trading instead of watching the profit/loss screen. Yet, trade experience in conditions like this of high volatility is the key because the trader will know what to expect, how to adapt and what trade approach to use in trading conditions like this past week.

    As for your reference to "this week I would have made big profits"...this week is unsual volatility. Do not let it fool you into thinking its going to last a long'll know when its will not see those big profits and/or it will take you a lot longer to catch those big profits. :D

    Its common to see traders jump into the markets during high volatility market conditions because they see all the news reports about the big losses along with the big gains and they believe they can outsmart the market to be on the side of the big gains.

    Only a few will make big dollars during these types of unusual volatility conditions. In comparison, most will just blow up or start changing their trade approach as if they do not want to miss out on those big profits. Reality, it usually just results in poor trading because that changed approach has not been properly backtest for high volatility trading conditions.

    The mind plays a lot of games when real money numbers start moving at an extreme fast pace in the profit/loss screen. Sometimes its just best to walk away from the screen...go take a long walk and do other activities not associated with the markets until calm returns.

    Last edited: Oct 13, 2018
    Sprout and victorycountry like this.
  7. rb7


    Trading for a month in SIM, is not enough. I know that we all want to go real and collect the dough, and it's very tough to extend the SIM period, specifically when SIM is going well.

    Also, not all SIM environments are created equal. That makes a big difference. Did your SIM was really close to the real world?
    wrbtrader likes this.
  8. Hello John9999,

    Congratulations to 1. Develop a plan 2. Sim trading 3. Going live.

    You will do well.

    Trading sim is no difference then trading demo if and only if you use real emotions and honesty in your real time trading and trading journal. I trade sim as well until I am confident, unnerved and consistently profitable and when I'm ready to risk my real capital.

    It's no difference then a quaterback on the first play in the superbowl, nervousness will be there. It's part of it. It's no difference then an engineer bring the demo design to real world application and clicking start and monitoring the results.

    Enjoy the process, fail or win, sim or demo.

    Have fun and enjoy what you have accomplished.
    John9999 likes this.
  9. John9999


    Yup. And the penalty for not executing to plan is to stop trading. Which after trading real $ all year is exactly what I did fir the last month. I’m happy I took the break and got my plan and mentality back on track.
    themickey likes this.
  10. John9999


    This was a one month break after training with real money for well over a year and a half.
    Hi Janine great to read build my confidence and get some things straightened out.
    #10     Oct 13, 2018