Why do I need a 'Demo' or 'Paper Trade' account with my broker?
It is absolutely essential that you fully understand the terminology of your broker (which may vary from ours), and their own methods of opening/closing trades, managing profits and adjusting stop-loss orders.
Trading in a 'Demo' account is not the same at all as trading a 'live' account. It is not 'real'. You will likely be far more relaxed, and therefore so inclined to take risks that you would find hard to justify to yourself if it all went horribly wrong in a 'live' account.
But, by using a 'Demo' or 'Paper' account, you will learn the exact processes used by your own broker.
So, you MUST be very familiar with the processes used by your chosen broker. Mistakes on orders and stop-losses in a 'live' account can be very damaging indeed.
Related Articles
What order types (for stocks) does my broker need to support?
For stocks, options, CFDs and Spreadbets if your broker offers a 'demo' or paper trade account you can check out their order procedures and terminology there at no risk. They should also have an FAQ, and should be happy to guide you by online video ...
As a complete beginner how long would I need to spend on this each day?
First work through the on-line training and take notes as you go. Many subscribers go through the education several times. Go at your own pace, its better to understand it than to finish quickly. Once you have a basic feel for it, an hour a day is ...
How many trades is reasonable to have open as long as I trade only 3% of my account on each trade? I see many opportunities but am not sure what is reasonable especially with the expectation that the markets are going to retrace within the near future.
Really, the number of trades you have open is a matter of personal comfort. For us, 5 at a time is ok, rarely more. For our most successful students, when the markets are ripe for picking, they might go to 20 at a time, but, trade management is key. ...
When opening a Stock Brokerage account should I check "cash" or "cash/margin" for account type when implementing Flag Trader strategies?
Broadly speaking, there are two types of trading account you may be interested in. Regulation T Margin, or Cash. Reg T Margin gives you the facility to partially cover a trade on money 'borrowed' from the Broker; Cash means that you need sufficient ...
Can you recommend a broker?
For Stocks and Options: Nasdaq maintain a list of preferred on-line brokers on the following link: http://www.nasdaq.com/investing/online-brokers/ Scroll down that page for a few more. We are not affiliated with any broker at this time. For UK ...