I think you have to start with Sim; do it for a while (time will vary depending on your ability to learn, etc). Then, once you're comfortable, switch to real money on SMALL size. Lose some real cash. Switch back to Sim. Then switch to real money again. You may have to repeat this Sim->Real$->Sim->Real$ cycle a few times before you "get it", but it will save you a lot of cash. I personally know a very successful S&P trader who started on Sim, then went real $, and back to Sim and then real $ again before he really got it. That's the process I'm following as well.
If you could walk on and play quarterback for the Patriots without training would you? You have the same chance of being flattened in the market as on the football field if you don't train first.
I started out trading on a sim. I treated it like the real market. i thought it was helpful to learn a lot of what works and what doesn't.. back then anyways. Why start out trading using real money when the likelihood is you are going to lose a lot learning? Similar to when you are having a losing streak, may as well cut size and lose on less size until have figured out what is going wrong. Also, if you can't make money on a sim, probably no chance of making money live... and can try something else.
I just disagree with a lot of the sim concepts here. Training is important for understanding the way things work, but simulation is not the same as the real thing. Does college really prepare you for the real world??? Does a pilot flying on a simulator really know what turbulence feels like with passengers lives at risk? I think once a new trader has used sim to figure out how things work it is best to put some real money at risk, a small amount, and LOSE it all. There is no better teacher than real world experience. again - just my 2¢
The only REAL sim benefit is to reveal flawed strategies. "Success" trading sim does not necessarily translate to success with real money....
Newbies - use your head. Why would you want to jump into Live $ trading until you've made some $ on Sim? Makes no sense. Think for yourself. You don't need countless examples of flying, playing football, etc etc. It's common sense!
I started out trading real money. Ok, that's a lie. I had one day on the SIM courtesy of Swift Trade. I think many of the posters are correct in saying that learning everything on a SIM is troublesome and can cause real damage once a trader goes live and feels real pain the first couple of times. I will say this though. After years of trading live I have recently gotten into the practice of using a SIM for trying new ideas. For years I risked real money on every idea I had. I tried to keep those "testing" losses small but they all eat into the bottom line. I am now probably in SIM mode for 3 hrs each day...testing, learning, tweaking. I wish I had a quality SIM years ago. Better late than never I guess.
Other side of the coin is to realise that if you make too much money too fast on a sim,then you are definately not ready. I think of it this way.Theres a quiz show in UK called Who wants to be a millionaire? The first few questions are easy so you are virtually guaranteed to bank 1k. For the very few contestants who are sitting on say,100k with the next question worth 250k, they may know the answer to the next question but the problem is if they are wrong,they walk away with 1k and lose 99k. On a simulator you go for it...in the real market... i think you know what i'm saying. I took 10k to 900k on a simulator after 20 or so attempts(blew out 19 times)-i'm a stubborn sob.Luckily i took that as a warning, and took 10k to 11k over several weeks.That was progress so i started with a small account about £300,blew out quick-back to sim again.Rinse and repeat 4 more times with increasing size(being undercapitalised doesn't help),more knowlege,discipline patience etc.Finally,it clicked. 5 years. This is the hardest thing i have ever done,but it's simple now.But i know that disaster could be the other side of a paper thin wall.Superstar traders have gone bankrupt,so who am i to say it will never happen to me? No pension,no sickpay,no long term security ..for traders like me,well,most people can't understand what you do or why you do it.And unlike other professions there is almost no one to help. You gotta really understand yourself and why you're doing it. Bottom line? if i had to start all over i'd do it again.I would rather spend my whole life failing at something i really want than spend 1 week kissing ass working for the man. So i guess if you want it that bad and are prepared to do what it takes,and you have the' right stuff ' there's a good chance you can do it-it's not rocket science.
After trading in SIM for nearly a year I realized I was petrofied when started to trade live. Even though I had a winning strategy proven by nearly 12 months of stats. my emotions were killing my trading. Only after I reduced number of contracts traded by half, I was able to get control of my emotions. Some tweeking to the strategy was required since money managment was based on multiple contracts. th