Asked on 27 Jun 2019
Can try virtual account 1st to try out. I can't say trading is not good compare to fundamental investing. I do have friends do quite well on trading. But for me, i go for fundamental cuz. I tried trading and it just not for me.
If you have no working knowledge, I suggest you stay out of it. Trading is actually just gambling to me. Build up your knowledge, learn about both trading and investing and ask yourself which do you prefer. And once you have an idea of your risk appetite, yes it's a good idea to start off with a virtual account first. But virtual account will not make you feel the pinch as much. At some point, create a live account and fund small, and try out what you have been practising. Notice how you feel, your emotions and psychology, to determine if it's suitable and what you want.
A virtual account is good for you to practice your investment rationale and thesis but it negates the emotional factor behind investing which I find is a considerable and significant factor in determining how one executes their trades in reality.
i.e. When one's virtual account drops 50%, one is still able to sleep soundly, but if that occurs in real life where money is real, the pinch and emotional attachment behind that monetary value would be very different.
Here's some virtual accounts you might want to try out your investments on:
Tradehero (on Android and Apple)
But my 2 cents of advice, try investing with real money, put in a small amount, buy into a sound + reputable company and try dabbing your toes in investing.
You can try trading on a virtual account. A lot of foreign website brokerages such as CMC offers virtual trading account which you can sign up.
However virtual accounts have one major disadvanatge and that is you are trading on virtual credits and not your own money. Trading carries a lot of emotional element and trading with your money affects you emotionally a lot. Emotion clouds rational judgement.
This is also why I believe many bank traders have an edge over ordinary traders because they are trading with other peoples' money and not theirs. So emotions felt are less and prevents them from clouding their judgement
Setup a virtual trading account.
Learn from other traders. I recommend trading with Rayner. He does good videos with alot of explainations.
Another one I recommend is Tradciety. These guys use different methods but they have great youtube videos.
Seems like you will be trading the euro or us market. Us market generally move at opening and 2am sg timing.
Having no experience and trading oversea market is risky as you are not there/contacts to receive the latest news, updates or rumors.
There are various third party simulations available to help you understand your style of play. Through this process, you get to learn from your mistakes without losing too much capital.
If you are new to investing, then you should give it a try. Personally, I prefer to invest than to trade.
Here is everything about me and what I do best.
To grasp trading, I suggest you look to expand your knowledge in technical chart reading besides fundamentals. I assume when you mention trading, you are holding positions for the very short term and you aim to profit very quickly.
Besides chart reading, you will need to have a trading system in place with strict take profit and cut loss parameters.
Having a virtual account will definitely help to practice trading. Build up confidence and a strong record of profitability before going to live trading.
Totally agreed with the previous answer by Billy. A virtual or demo account is simply for you to test out new products or hypothesis of trading strategies/systems (of which you can also simply just run simulations in some environments instead).
Nothing beats trading real money, thus do yourself a favour, open and fund a small real account somewhere, and trade it. See and learn about your own trading psychology, learn about risk management in addition to the usual more interesting trading strategies, and you will find consistent profits coming for you earlier than your friends who have gone the virtual account route.