Absolutely best way of trading recommended for beginners | Demo Trading

As beginner traders, we all tend to approach trading with the urge for instant gratification and an unrealistic expectations because we see trading as that ticket to get rich overnight and that leads us to focusing on the wrong things like seeking strategy after strategy after strategy. That we neglect anything that doesn’t meet our get rich quick mindset. And that has lead us to the question of the type of trading that is best for beginners

Demo Trading! That means we can trade in real time with fake money as if we’re trading real money.

YES! DEMO trading is one of the greatest advantage we have as a beginner to trading that we need to first make the most of, in order to see how everything moves and react while building a structured trading plan. But often enough, every beginner wants to get into the real deal without first learning what it takes to be successful in trading

We absolutely have to MAX out this advantage we have as beginners

From Demo trading we know what style of trading best suits our personality as we build a structured trading process before we go live to trade our own money, other people’s money, or other firm’s money

Why demo trading is really useful;

Whenever any trader first sign-up with a platform, it’s simply logical to test and see how the platform works. To get familiar with how trades are executed in the platform before putting our hard earned money on the line

As a beginner to trading, demo trading should be seen as the privilege we have to learn and master the trading environment. To gain confidence in our trading strategy and our trading processes without exposing ourselves to the real risk involved in trading. Because without a solid confidence in our trading strategy, we cannot play the long game

Without a solid confidence we’ll always get in our own way to either tweak our strategy, change the strategy, or take trades base on what we think (gambling mindset) and we’ll just continue in that circle of looking for a good strategy over and over

The search for that holy Grail strategy that doesn’t exist anywhere in market

I don’t know if you’ve heard the saying that "the only place success comes before work, is in the dictionary"

Almost all, if not all beginner traders are setup wrongly from the beginning of our trading journey/career (if we’re intending to go full time with trading someday). We all somehow have this urge to trade because we’re expecting instant gratification

Our mindset when we first knew about trading was how much we can possibly make in a day, week, month or rarely yearly without thinking it’ll take some time to learn the hard skills involved in it just like every other skill out there, before we can begin to make consistent money from it

If it was really that easy to achieve such expectations in a market that trades more than $5 Trillion on average everyday without learning the vital skills and concepts involved, why isn’t everyone trading it and making some cool cash from doing it?

As beginner traders, demo trading is where we put in the work to first acquire some vital skills like Patience, Discipline and Experience. Also learning and mastering some of the most important concepts of trading which are probability, the law of large numbers and compounding interest, without experiencing the emotional/phycological stress that will be involved if we were to gain those experiences with real money on the line

Demo trading allows us to gain different experiences in the market (to know the winning and losing streak of any strategy) and these experiences builds a solid confidence in our trading strategy and our trading processes whenever we decide to go live trading. Because without a solid confidence, we can’t remain discipline to focus on the long game

How demo trading accounts work

Not much of a difference from live trading account. — Demo trading accounts are just like live trading account with the only difference of trading with virtual money instead of our own money. And just like we’re not losing real money while trading with a demo account, in the same way we’re not getting real money whenever we profit from a trade we took in a demo account

But nevertheless, It’s just a way to start taking part in the emotions involved in trading while building a solid process we can remain confident with in the long run

Literally when we sign up with most brokers if not all, we’re entitled to a capital of about $10,000 and more to practice trading with. And we can easily reset this virtual funds whenever things are not going our way i.e if we’re experiencing losing streaks. This privilege is not present in live trading without a serious emotional stress that can result to us quitting due to losing our hard earned money

In the beginning of our practice with this virtual funds on our Demo accounts, it’s logical that we start trading with an equal capital that we’d deposite into our live trading accounts whenever we’re to trade live

We can practice scaling it as we would scale our live accounts because starting with an unrealistic trading capital just doesn’t look too good from emotional standpoint

How long should I demo trade?

Well it depends but with the right guide, logically something from 4 to 6 months should be pretty normal for a high paying skill as Trading unless you think otherwise as that was certainly not our mindset when we first have that urge to start trading

Most beginner traders will not even want to have such patience in learning the vital skills and important components in trading before wanting to begin to make a lot of money from it

Keep in mind that it’s not advisable to be changing and tweaking strategies too often

However, let’s do a few search online to see other high paying hard skills out there, and imagine how long it takes to learn them on average in comparison to our mindset when we first have that urge to take part in a market that trades over $5 trillion on average everyday

• Mobile application development; As the name implies, it’s the act or process of making or designing an app for mobile devices. And before anyone can probably start making any money as a mobile app developer, you must first have taken the time to acquire enough knowledge on layout and design, graphics, programing, e.t.c
• Cloud computing; It’s the delivery of computing services over the internet. The term is generally used to describe data centers available to many users over cloud. There’s several aspects to Cloud Computing. From basics, to security, to development and to advance networking. It would be weird to start making any money without background knowledge of what it really takes to do so
• Analytical reasoning; An ability to look at information, be it qualitative or quantitative in nature, and discern patterns within the information. There’s several things that must be done to making it a career like reading books, taking courses e.t.c in order to sharpen this analytical reasoning skills
• Artificial intelligence; The development of intelligence machines, thinking and working like humans. Simply expertise on the ins and outs of an artificial neural network (a robotics brain). And before anyone can start making any living with Artificial intelligence, they should need a good knowledge in statistics, software design, engineering, coding e.t.c
• Video Production; It’s simply filmmaking. The act of producing video content for TV, Home video or the internet. You’ll need to have some good foundation on video editing, Camera setting, Shooting, Cinematography, directing e.t.c

Now we should probably try to imagine how long it’ll take on average to learn those few skills in comparison to the mindset we brought into trading the Financial Market

All these various components required to acquire those skills we mentioned above probably wouldn’t take hours, a day, or a week to learn and master them. And even though it individually depends on the focus and determination as at when those skills were acquired, It all takes time!

Work always comes before success. The dictionary is the only place that success comes be work. So let’s put in the work with a demo account to learn the vital skills and concepts, build our strategy and plan a good trading process. Success will eventually come playing the long game

How can we know that we’re ready to go live trading

There’s probably a couple of things that we should look out for before we consider moving from a demo account to a live trading account;

• Completely comfortable with our broker and already familiar with the platform we chose
• Already developed a solid structured plan of Entries, Exits Risk and Money Management that we won’t be deviating from due to emotions
• No longer getting bothered by losing trades because we’ve understood how the Long game is superior to the Short game, giving probability enough time to play out as we already know what to expect going forward to a live trading account
• At least making a consistent profit of about 6% or more to our trading account after every large sample of trades size (20+ trades) depending on the timeframe that fits our personality

So where can we demo trade?

Literally we should be able to demo trade with any trading broker we decide to trade with. We clearly need to stay away from brokers that takes away the privilege of demo trading from traders

Here’s my content to guide you on choosing the best Broker(s) for you

Trading is a BUSINESS - Treat it as such!!