Day Trading Games

Day traders use trend graphs like this one.stock market analysis screenshot image by .shock from Fotolia.com

Day trading (buying and selling stocks in the same day) can be an exciting and profitable pastime, but it is also extremely complex and competitive, and most people require some practice to develop real expertise. That practice, of course, can be expensive in the cutthroat world of day trading, so a number of brokerage houses have developed programs through which individuals can open demonstration day-trading accounts with "play" money.

By using a demonstration account, users can get a feel for the day-trading game, practice their trading strategies and execute simulated trades, thus getting to practice without risking real money.

Setting Up a Demonstration Account

You can set up a demonstration day-trading account at almost every major brokerage. Assent LLC, Think or Swim, Genesis Securities and StrategyBuilderFx all offer demo software with access to real-time market data that you can download directly from the companies' websites.

Once you set up your demo account you are ready to practice day trading with "play" money. But this is not a simulation of the markets; you are making "play" trades using real live data, and your results reflect how much you would have made or lost in your trades.

Most day-trading experts suggest you spend at least several weeks getting used to day trading and learning the ropes of the news flow and trading strategies, but it's up to you to decide if/when you begin to trade with real money as the demo account will not expire.

After you have practiced with the demo account enough to feel ready to try day trading with real money, you will need to fund your "real money" account at the brokerage (usually $25,000 minimum). This is a simple banking transaction and usually takes no more than 3-4 days, often less.

Once your account is funded you are ready to trade, and assuming you requested and were granted margin privileges (the ability to borrow more money to invest), you will have the "buying power" to purchase up to three times the amount of stock as your original deposit would have allowed.

Many public and private forums are available for day traders to gather to discuss new ideas and strategy, rehash daily results, and make plans for the next day. Though you have take some things said in these forums with a grain of salt, they are useful places to pick up more advanced day-trading strategies and other tips, and to make some useful contacts.