Online trading of stock or currency has now become the major career opportunity for any individual or a business. However like all the business, a person must have a thorough knowledge of that business which he is going to start. He needs to learn each and every aspects of business like for the business of trading of goods, person must have a knowledge from where he can by the cheap goods along with the minimum transportation cost so that he can able to trade / sell them at a better profit. If he does not able to cope up with these element he cannot earn a handsome profit and resultantly he could not be able to bear the expenses like rent, utilities etc and point may occur that he may fail in his business and he have to wind up his business.
Similarly online trading also tends to have a strong background of knowledge before proceeding. A person needs to know how to do for online trading through reading books and getting lectures. Nowadays, internet is full to training videos and materials through which a person can easily learn the fundamental requirements of the online trading.
Keeping in view, various material / lectures etc on how to do online trading business there are numerous company who not only provide the plate form to do online trading but also give free or paid online trading to the users as well. They have made many learning materials, audio and video lectures; organize webinars / workshops etc to help their clients / user to do online trading via their trading platform.
Now in the today’s world of virtual simulation, platform has been made by the companies where user can execute as real. Like for example, there are many simulation games which give real like environment feeling to the driver and he actual learn driving a car with that game. In online trading; Demo trading account, is another example of simulation trading where trader feels like he is doing trade in real.
In Demo trading, the user is given with the same environment, tools, techniques and analysis; virtually through which the user can learn very fast. For example in Forex trading, the user is given with the virtual equity of $50000.00 through which he can buy and sell currencies at live rates. Through this virtual but live trading, the user can easily come to know what kind of difficulties are going to come and he then try to learn how to cope up with those difficulties. These platform are now so advanced that they provide all the analysis tools through which user can easily analyze when to buy or when to sell the currency. As well as live news & reports that are directly or indirectly associated with the prices are also shown on the trading software which helps the user to analyze what type of news effect the currency.
Although these demo trading platform has number of advantages for the users but they also come with many disadvantages. Below is the comparison of positives and negatives of online demo stock / currency trading:-
|Helpful in learning||Virtual environment|
|Trade as per live / real environment||Less interest due to fake equity|
|Trade in live rates||Less concentration|
|Live Reporting and News||Leads Depression|
|Live Support||Highly Risky|
|Live & active analytical tools||Person can easily get fed up|
|Demo equity is very high which leads to lack of interest in actual money trading|
|Success in Demo does not guarantee success in real trading|
|Risk element cannot be highlighted due to virtual in nature|