We can only imagine how excited you are to invest in your first stock.
I mean, you’re four levels, thirty four blogs in – surely you’re ready to pop that wallet open and trade away.
Well, unless you enjoy the adrenaline rush of blowing your money. In that case, go ahead, open a live account and start trading!
The rest of us, let’s talk about the best ways to trade and invest your money.
Look, we would love to be able to teach you everything there is to the stock market and how to trade within a couple of days.
But to be completely honest and transparent with you, learning to trade in such a short period of time is not humanly possible.
We pride ourselves on being transparent and having a positive customer-mentor relationship with our clients is absolutely crucial to us.
So to put it out there as bluntly as we can – no, we don’t think you are ready to start trading the live markets and investing your (real) money into stocks at this point in time.
However, we do believe that you are ready to open a demo trading account and start demo trading.
Demo trading essentially means to trade in a simulated, real-time market environment that aims to recreate the stock market conditions as closely as possible, but without having to risk your capital.
When trading demo, traders and investors have access to most features that are also available on live trading account including, chart indicators, stock charts, trade tools, real-time prices and more.
You can think of demo trading as a trading software simulator that provides you with a real-time experience using virtual funds.
Just like a car simulator when you were learning to drive – you can use the trading simulator to find your way in the stock market.
The main difference between trading demo and live trading is that your capital will not be at risk as essentially it is virtual money (or virtual funds) you trade.
This gives traders and investors the platform to practice their trading skills, gain experience, get familiar with the broker’s trading platform, experiment with confidence and complete peace of mind with zero risks.
Demo accounts provide a great platform to get a first-time stock market experience, recommended and used by many professional traders worldwide.
The benefits of learning to trade with a demo account cannot be denied.
Seriously, there is no better way to put the theoretical into the practical and gain experience other than creating a demo trading account.
Demo accounts, also known as practice accounts are an invaluable platform offered by most stockbrokers as more often than not beginner investors end up burning their first account when live trading, as they fail to develop the necessary day trading skills, mindset, and discipline needed to successfully trade a live account.
There is no shame in creating a demo account. In fact, it’s a platform designed for traders to practice, gain experience and develop your skills further to make a potential impact in trading the stocks market later down the road.
But don’t let us fool you. demo accounts are not only used by newbie traders. Many experienced traders and investors use demo accounts to test strategies, trade sizes and risk management techniques for example.
To put is simply, real trading on a live account funded with real money is a different beast altogether compared to demo accounts and its virtual funds. It’s like sparring against your cousin and fighting Floyd Mayweather.
I know what one I would want to start off with.
One of the factors that makes a significant difference between trading live and the trading demo account is trading psychology and high-risk tolerance.
Your mind works completely different when you are risking YOUR money.
For example, many investors stated that while using the demo account, they take their time to think clearly and rationally but when it is their capital on the line, it is a different story.
It takes time and patience to prepare yourself for the emotion attached to having real capital in the game.
And that’s something we will cover later on in this Academy – Trading Psychology and Risk Management.
Many have done it and so can you!
So remember – patience, hard work and consistency.
Stick to those three things and you will be just fine!
Now, if you’re ready let’s set you up with a demo trading account.
Most brokers let you open a Demo account through their platform but if you need some help with picking the right one for you, you can always go back to the recommended brokers page and find brokers that offer the best demo accounts.
You can open a Demo trading account for other markets too. Many brokers usually offer the following: