When you are starting to test the waters as a day trader, you should always be on the lookout for techniques that will make your life easier. One big advantage that experienced traders have is just that… experience. Nothing can prepare you for the ups and downs of stock trading like actually putting your money into the market and making those buy and sell decisions. In the past it was only possible to get that experience by being on the floor of the exchange or having a direct line to your broker. That all changed with the coming of the online brokers. Now anyone can access real time quotes and charts with a simple click of the mouse. Just having access to the information does not necessarily mean you will become a better trader, you need to use this wealth of info.
The easiest way to make up for lost time on the experience front is to set up a practice stock trading account. With one of these free online accounts you can try out virtually any trading style that you might eventually employ with your own money. There is a lot to be said for going through the repetitions of trading stock. It is a luxury that we have being able to test (and in some cases even back test) trades based on technical indicators that we may not have used in the past. When you find something that you think may be profitable for the majority of trades, you should test it out on a practice account. It is much easier to manage the task of learning a new skill when you have a place to fine tune those skills. While trading stocks on a virtual account is not exactly the same as trading with real money, if you put in the time you will learn how to become a better trader.
{ 0 comments }