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The Best Way To Learn Futures Trading With Zero Risk

The Best Way to Learn Futures Trading with Zero Risk

Unfortunately for those new to active trading, learning costs money. In some cases, it can be a lot of money. However, there’s a simple way to minimize learning costs: You can use a futures simulator to run scenarios without putting capital at risk.

What Is a Futures Trading Simulator?

A futures trading simulator is a feature of the software trading platform that very closely replicates the live-market experience. It tracks exchange-direct data in real time, allowing the user to become familiar with the platform and the market itself. This functionality is typically available free of charge, making it the best way to learn futures trading for those on a budget.

Similar to a professional athlete, a futures trader can improve performance with preparation. Let’s take a look at how the trading simulator may be used to prepare for the live market with respect to study and trade execution.

Market Study and Strategy Development

There are two basic types of data analysis: historical and real-time. Historical analysis involves the scrutiny of past events and price action. Conversely, real-time analysis centers on the observation of price discovery as it evolves in real time. Although historical analysis is a useful tool in strategy development, there’s simply no substitute for observing the live market.

A trading simulator is an invaluable tool for studying futures in actual market conditions. It tracks the flow of pricing data from the exchange in real time, giving the user a clear picture of how trade is being conducted as it unfolds. For futures traders, the simulator is a great way to become accustomed to the speed and velocity at which price can move.
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Trade Execution

The job of a futures trader is to buy and sell contracts in an attempt to generate profits. The best way to become competent in this area is to practice trade execution. This is where the simulator earns the title of the best way to learn futures trading―it offers the user risk-free repetition.

Executing a futures trade involves three primary functions. The trading platform is a great way to become fluent in each within live market conditions:

  • Identifying opportunity: Exchange-direct streaming price data fuels charting applications and the trading DOM. Observing how each behaves in the live market is an ideal way of getting used to spotting opportunities as they develop, not after the fact.
  • Market entry: Placing orders at market with precision is a key part of trading competently. For traders who have not adopted an automated approach to order entry, drilling on a simulator is an effective way to learn how to cut down on physical mistakes. Sending limits, stops, and bracket orders manually to the exchange can be a challenging task. Getting your reps in can help fine-tune your order entry skills.
  • Trade management: Balancing risk and reward on the fly can be an inherently complex endeavor. The use of a simulator gives you the ability to apply a trade management strategy repeatedly, effectively working out any trouble spots ahead of assuming capital risk.

For most disciplines, practice makes perfect. Active trading is no different. Repetition enhances aptitude and competency. Using a futures simulator is a great way to boost your trading chops before ever risking real money in the live market.

What Is the Best Way to Learn Futures Trading?

When a trader first starts out in the market, education is of paramount importance. Aside from the study of blogs, trading guides, and webinars, a futures simulator is a great way to get accustomed to the live market. The best way to learn futures trading is one that does not put the student in a financial hole.

If you’re looking for a robust futures simulator, then look no further than Daniels Trading’s flagship platform, dt Pro. Featuring real-time streaming quotes, advanced charting, and a multitude of order types, dt Pro is a premier futures software suite designed for active traders. Sign up for your free 14-day trial of dt Pro today.

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Contact Daniels Trading

To open an account or request more information, contact us at (800) 800-3840 or and mention .

Risk Disclosure

This material is conveyed as a solicitation for entering into a derivatives transaction.

This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.

Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.

Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.

You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the “risk disclosure” webpage accessed at at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

About Daniels Trading

Daniels Trading is an independent futures brokerage firm located in the heart of Chicago’s financial district. Established by renowned commodity trader Andy Daniels in 1995, Daniels Trading is built on a culture of trust committed to the firm’s mission of Independence, Objectivity and Reliability.

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