We’ve discussed many tools and techniques to help you become a better day trader, and today we’re adding demo trading to the list.
There are many opinions within the demo trading concept. Some swear by the tool and even credit it for helping them become the day traders they are today. Others remain more skeptical, claiming that demo trading is somewhat limited and doesn’t offer a complete experience. So let’s talk about its pros and cons to determine if this option is right for you.
Demo trading allows you to practice trading without the risk. By using a virtual currency that doesn’t have any real-life value, you gain the understanding of placing a trade without the stress of loss potential.
This tool is fantastic for brand new traders who want to dip their toes in and learn the craft without putting their finances in jeopardy. Additionally, it’s still useful for more experienced traders who are looking to modify their tradingplans or pivot to a different specialization.
The only difference between demo and real trading is the faux money involved. You’ll learn about how the real market works through price action, collect real market data, and develop well-researched strategies. Not only will you learn about your trading style, but also about the broker if you’re considering opening a new account. All without risking your bank account.
On the other hand, many people believe that demo trading is missing an important factor that real-life day trading has: the emotional response brought about when real money is at risk. The stakes are low and consequences don’t exist, so traders may behave in a completely different manner than they would in an authentic trade. Some people may feel more adventurous and jump into the setups that they’d never choose otherwise. Others may find it boring and unrealistic since the thrill of the risk is gone, and it’s much easier to follow the rules when there is no chance to lose any money.
Both sides have valid arguments, but the real question is if demo trading is suitable for you. At Cobra Trading, we want to ensure that you are consistent as you grow your account and advance as a day trader. This is why we offer a demo account free of charge and encourage you to try day trading in a safe, risk-free way.
To open a demo account, all you need to do is reach out to our customer service team via a live chat. We are always here to provide you with educational resources and tools to help you on your trading journey, and encourage a smooth learning experience.
Mistakes can discourage beginners from learning and pursuing their passion. And in the world of day trading, missteps can be very costly. Losing money at the very start of your journey can be devastating to your mentality and willingness to keep going. Request demo trading today, and see what it’s like to trade on the stock market.