Trading is a business as well as a skill and requires both time and practice. You would not expect to be a top-level tennis player overnight, and with trading, the concept is the same. If you believe trading is like a lottery tick, it can be if you don’t really expect to win often as your reward is based on the risk you take.
One of the best ways to learn how to trade is to use a demonstration account to practice your trading strategies. You also want to be able to practice trading using a mobile app, so if you must trade on the go you have the tool need to execute trades.
What is a Demo Account?
Many brokers provide their clients with a demo account. These are accounts where you are trading fake money instead of risking your real capital. The benefits are helpful and allow you to test ideas. Some ideas might be risky and it’s helpful to execute trades using a demo account.
The more reputable brokers provide their clients with demo accounts that have all the bell and whistles of their real accounts. This not only includes real-time markets but in addition, a risk management system and a balance with profits and losses.
A demo account is very similar to a real account. You can perform technical analysis on charts that use real-prices. You can execute trades in several ways. You can develop studies are systems that act as signals, and backtest these ideas using a demo account.
Over-time you need to determine which trading strategies help you reach your financial goals. Some investors like short term trading strategies where they close out their positions rather quickly while others are looking for long term changes in the price of a security and want strategies that cater to their goals.
To develop a strategy, you need to evaluate your time horizon and the amount of time in the day you must execute and manage trades. If you are working full time it’s not advantageous to trade full time. To trade on a short-term basis, you need access to an execution platform that could include a mobile application.
A mobile application is a platform that allows you to execute and track trades while you are on the go. There are several sophisticated mobile apps that allow you to see real-time news, manage your risk, chart trades as well as deposit and withdraw capital. Many are also customized applications that are similar to the browser-based trading apps offer by your broker. By using the combination of a browser-based app and a mobile app you can provide yourself with flexibility and trade nearly around the clock.
You can also educate yourself with a trading education app, that provides information on strategies. For traders that have a longer trade horizon, the mobile app helps you keep abreast of the situation as they occur.