TRADINGSIM DAY TRADING BLOG

Welcome to the Tradingsim Blog.  Please browse the various trading categories which cover everything from trading psychology to chart patterns.  Another great resource we offer is our trading simulator which allows you to practice placing trades against real historical tick data.

7 Reasons Day Traders Love the VWAP

7 Reasons Day Traders Love the VWAP

Finding the average price based on closing value of a security will not give you an accurate picture of a stock’s health. This is where the VWAP comes into play. If you are wondering what is the VWAP, then wait no more. VWAP stands for volume weighted average price and it identifies the true average price of Read the full article →

How to Invest in Single Stock Futures

Single Stock Futures

In the futures markets, when one makes reference to the futures contracts, the obvious assets that come to mind are commodities such as energies, financials, and agricultural commodities and so on. However, being what they are, “derivatives” it is not surprising to know that there are also futures contracts for the global stocks as well. Read the full article →

6 Things You Must Know About Soybean Futures Trading

Soybean Futures

Soybean is an oilseed crop with the primary purpose of extracting the oil contained in the seeds. Other well known oilseeds besides soybeans include sunflowers, rapeseed, cotton and peanuts. But of course, for futures traders, soybeans futures are one of the most popular contracts in this category. The soybean trade is a global trade and Read the full article →

6 Key Things You Need to Know about Cattle Futures

Cattle Futures

Cattle futures are part of the livestock futures category. Just as with any other futures contract, cattle futures contracts are legally binding agreements between the buyer and seller, to take and make delivery of cattle. There are many different types of livestock futures contracts that can be traded which have significant enough volumes so that Read the full article →

What are the 7 best books for Futures Trading?

Futures 101 (2000 Edition)

The futures are an interesting market to trade, especially for the retail trader. It offers many benefits such as lower trading capital, trading on leverage (yes, it can be risky) and the ability to go long or short on the contracts, among other things. If you are new to futures trading and want to enhance Read the full article →

5 Key Functions of the US Commodity Futures Trading Commission

US Commodity Futures Trading Commission

The U.S. Commodities Futures Trading Commission or CFTC as it is commonly called, is an independent agency of the U.S. government with the responsibility for regulating the futures and options markets. The CFTC was established in 1974 with the enactment of the Commodity Futures Trading Commission Act, signed by the then U.S. President Gerald Ford. Read the full article →

How Does the Price of Gold Affect Gold Stocks?

Gold Bars

Gold, also known as the precious metal or yellow metal is one of the most well known commodities to mankind. Gold finds its uses from industrial and manufacturing to personal jewelry and accessories. In the financial world, investors and speculators often flock to gold in times of crises and market uncertainty, giving it the nickname Read the full article →

5 Most Common Ways Traders Blow Up Their Futures Accounts

John Maynard Keynes

The most essential aspect in being a good trader is not profitability but consistently. Being able to consistently make profits from trading the markets is the mark of a good trader. To be consistent traders need to have the right emotional and psychological mindset while also be determined in their approach and trade with a Read the full article →

What is the most popular Oil Futures Contract?

Spot Prices - WTI and Brent

Crude Oil, as an energy asset is one of the most popular futures contract for traders. It is one of the most volatile of energy futures contract and in terms of volume, oil futures contracts stand head and shoulders above the rest. The only nearest contract that comes close to Crude oil is natural gas Read the full article →

How Much Money Do I Need To Get Started in Trading Futures?

Performance Bond and Maintenance Margin

So you have learned about the futures markets and the many benefits it has to offer and you are of course curious to getting started. However, there is one nagging question that keeps coming up. How much money or trading capital do you need to trade futures and to make a consistent income from your Read the full article →

7 Key Differences between the Futures and Forex Markets

Forex Daily Turnover

The foreign exchange or forex markets are one of the biggest markets with an average daily turnover of $5.1 trillion as of April 2016, according to the most recent Triennial Central Bank Survey by the Bank for International Settlements (BIS). It is not surprising that retail forex trading is one of the most popular way Read the full article →

How has Algorithmic Trading Impacted the Futures Markets?

Algorithmic Trading and HFT (Source - DBResearch)

Technological improvements have grown by leaps and bounds and changed the way the financial markets are interlinked and traded today. Gone are the days of using a pen and paper to conduct technical analysis or calling your broker to place an order. The advent of computers has brought trading to the homes changing the way Read the full article →

4 Key Differences between Futures and Forward Contracts

Example of a Forward Contract

Futures and forwards are both derivatives financial instruments and look similar in nature. However, when you look at the technical details, futures and forward contracts are two very different financial products, not just in the way they function and trade but also serve completely different purposes from a trader’s perspective. To truly understand how futures Read the full article →

5 Key Differences between Futures and Derivatives

Futures Ticker Board

Futures and derivatives might look the same, but when you scratch the surface you will find a whole lot of differences between futures and derivatives. As someone rightly said that the devil is in the details, so is the case with futures as well. At the outset, futures and derivatives perform the same function, which Read the full article →

How much money can you make day trading futures?

Starting Capital

You might have asked yourself this question at some point as you test the waters trading futures. To be honest, the question is as vague as asking how much money can I make working a full time job. Still, it is one of the most commonly asked questions about trading and futures in general. Indeed, Read the full article →

Effects of OPEC on the Oil Futures Market

Crude Oil Prices and Key Geopolitical and Economic Events

The Organization of the Petroleum Exporting Countries, or OPEC as it’s more commonly called, plays a pivotal role when it comes to the crude oil futures markets. Although according to many experts, OPEC’s significance has been waning in recent times, the oil cartel still wields considerable influence on oil prices. This is especially important for Read the full article →

Seven Reasons Futures Trading is Better than Equities for Retail Investors

Example Order Bood for ES Futures

The average retail investor is often spoiled for choice when it comes to the financial markets. From brokerages offering you discounts on your trades, to low commissions, the marketing hype one gets to see can be overwhelming at times. You can trade, stocks, options, futures or spot forex markets, the choices are endless. While equities Read the full article →

Should You Trade the Big or Small S&P Futures Contract?

CME Futures Contract

Difference between the SP (big) and ES (e-mini) S&P500 Futures contract The S&P500 Index is one of world’s globally recognized leading stock indexes for the US equities, only next to the Dow Jones Industrials Average. The S&P500 Index tracks many of the large capitalized publicly listed companies in the world. It is often used as Read the full article →

Futures Contracts – 4 Things You Absolutely Need to Know

Chicago Board of Trade Building

What is a Futures Contract? A futures contract is something that you might have heard of, either in the media or read about on a website or in the newspaper. Unlike stocks for example which represents equity in a company and can be held for long periods of time or can change hands numerous times, Read the full article →

8 Tips for How to Trade in the Zone

8366125878_7e25a553b3_o (2)

I am convinced after thousands of trades that success has very little to do with indicators or systems. It also has very little to do with how much money you start with in your account. It all comes down to your ability to stay in the flow with the market. In order to stay in Read the full article →

Kicker Pattern vs. Exhaustion Gap: Positives and Negatives

bulish kicker pattern

What is the Kicker Candlestick Pattern? The kicker formation is a reversal pattern that starts with a candle in the direction of the primary trend, followed by a gap contrary to the trend. Talk about being caught on the wrong side of the trade if your judgement is off. The pattern symbolizes a strong change Read the full article →