Trade The Journey

Trade The Journey

Relax, Its just a Game!

To gain more experience in trading, I downloaded a trading game app on my phone.

Good trading games are hard to find. Even harder to find are trading games that resemble the real markets.

 

After some research, I found an app to improve my trading called, “Trader Game.” This game offered the first level free and the next six levels for $8.95. Another rip-off game trying to gauge the customers is the thought that came to mind.

 

The games’ focus is on price action.

 

There are no volume bars or a large selection of technical indicators. In fact, there is only one indicator available, a simple moving average. The simple moving average (SMA) is allowed two periods to follow. You are also limited to placing market orders without stops or limits — one SMA for short-term trends and the other for long-term trends.

The only chart available is the candlestick chart. When I began playing the game, I thought of it as a game. It was like an arcade, where I placed orders to buy and sell. My earnings variated based on the amount I was willing to risk.

 

At first, I was profitable then I started losing money.

I kept losing money, and now the game had my attention. I had to think. I had to manage my money, and as the game went I on, I noticed there were trends to follow.

Then I read the directions. Not only were these real charts, but each chart was also different.

This could be an excellent learning opportunity if I took advantage of it. So I begin to watch for major trends to develop. I thought about candlesticks’ meaning and what the movement in price was telling me. Instead of relying on what I wanted to see, I begin to see what was happening.

 

These were breakthroughs for me.

Once I noticed what was going on, I began to lose. I saw trends that didn’t exist and would proceed to get whipsawed. I saw trends that I thought would reverse and never did. I also was tricked more than once in the trends ultimate direction.

So with time, I learned never to fight the direction of the trend. In most cases, once the momentum is bullish, it takes a lot for the direction to reverse.

I also learned to be patient and wait, believe me, there’s a lot of waiting.

I’d win and lose and then win again. I’d set a 1% risk level to the capital invested, which means I was always entering and exiting — not enough space for the price to move to the forecasted area.

If the price didn’t move in the direction forecasted, I was out of the position quickly.

With a couple of wins under my belt, I felt I could beat this game. There were a couple of times, I held to my position, and the position moved into a winning position after serious decline.

 

And then it happened.

I held the position, and it crushed me. I sat there and watched in horror still hoping the price would reverse its direction. It never did. It just went higher and higher!

I lost 50% of the account’s value. With my confidence depleted, I lost another 25%. After these losses, I decided to stop playing for the night. I was upset. I now had to work my way back.


 

There are nine levels to this traders game, and I made it to level three where the charts get progressively harder. The later levels also factor in commission costs and carrying costs.

My goal is to defeat this game. The ultimate goal of this game is to accumulate an account worth ten million dollars.

Some will say that this game cannot be compared to the real stock market. While that may be true, it can help you get a better feel for price action.

 

Being able to decipher the price action with a limited number of indicators can help keep your view more closely aligned to reality.

Of course, this is just my personal opinion. Questions? Corrections? Thoughts?

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