Hone your trading skills: Use Virtual Trading

Have you ever seen a person, who does not have the experience of driving a motor vehicle, directly going to the showroom and driving out a classic brand new Motor Car? In real life, the chances are less and if it happens, the chances are high that the driver will smash into or lead to a freak crash. We often encounter this kind of situations in our life and despite knowing the fatal consequences, we plunge into it. Ditto is the case with a stock trader applying different trading strategies. A regular trader plays in the stock market but fears lack of expertise and time tested successful strategies in executing them.

Virtual Trading Platform
To overcome this problem, many online websites have implemented Virtual Trading platform where a person can evaluate his trading skills without using real money. It is the virtual money which is provided to the person which he can use in trading/buying/selling stocks, options, futures, forex etc. Since no money can be lost while trading, there are virtually no risks and in one way, it allows the person to experiment with his skills or allows him to hone his trading skills. For novice traders, this is the best platform that incorporates and facilitates technology, performance and profitability to help to achieve online trading skills. In nut shell, you dont need to be genius from start.

Trading rules One need to follow strictly
Though trading is not suggested for novice retail investors, one must follow the rules of the game, if plunged into. There are many rules which should be strictly followed to make your trading skills disciplined. Some of the rules are Stop Losses, Early Warning Signals, Technical Skills etc. Human beings often get deviated due to emotional behaviour and irrational factors. The virtual trading is a platform where you can practice your skills and define your trading styles.

Advantages of Virtual Trading
Whether you are a beginner or an expert trader, you can practice more complex orders and options strategies before plunging into the real trades.
With free integrated trading screens and research data, you can use lot of permutations and combinations to virtually trade stocks, ETFs, options, forex etc.
You can always feel the excitement in trading without risking your real money.
Experienced traders can analyze multiple options trading strategies and can also analyze their virtual performance and then implement it if they find any suitable pattern.
If you make any mistake, even a huge mistake, you dont lose your money. You can always readjust your account and start all over again with new capital.

How is it different from real trading?
Real trading is a platform where you use your real money and your financial risk is at stake. You make one mistake; it can wipe off your entire portfolio. Many traders or investors use real trading platform to use their skills to earn money from the market. It is said that stock markets are still not efficient, especially in India; hence, the technological advances can bring you many trading skills. People use real trading platform to deploy their tested or untested strategies to make quick money.

Trading Platform in India Real & Virtual
With technological advancements in place, almost all stock brokers provide online trading platform. The competition is so stiff that the trading cost is almost negligible in India as they offer trades at 5 to 10 bps unlike the earlier eras in paper trading where the transaction cost used to range from 0.75 bps to 2%. With the advancement in technology and the reluctance of individuals to come under the arena of stock markets, many stock brokers provide virtual trading platform where investors can hone their skills without putting any financial risk. Brokers provide the free platform from the commercial point of view as they get ready customers which can bring revenue to the broker in other transactions in future.
On the other hand, there are other set of providers that provide virtual trading platforms in the form of stock games for real fun. Their aim is to provide trading excitements to novice people and make them understand the rules of trading and investment. It also helps them in attracting online visitors which in turn help in increasing the site visit hits. All game sites are not virtually free. Some provide it for a limited period offer and then starts charging while others provide life time free opportunity with limited money only. If you want to increase the capital money to do the virtual trades worth of higher capital, you need to subscribe to different packages.

What is in store for a novice trader?
Virtual Trading is at nascent stage in India where the young population are still to experience themselves in the stock market. The platform provides an opportunity to learn different trading skills before plunging into it with real money. With the digital and mobile communications penetrating very fast across the geographies of India, these platform providers are at the biggest advantage and better placed. The only point which needs to be kept in mind is that a trader needs to be disciplined in his approach and must follow some basic rules of trading to become a successful trader.

Happy Trading!