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Why You Must Start Your Trading Journey with Virtual Trading?

Most of us start trading with an objective of making a lot of money. There is nothing wrong with this kind of thinking. In fact the main objective of any trading is to earn money. But there are very few people who make consistent money over a period of time. Trading is not a sprint but a marathon. Has anyone won a marathon without practicing?

Trading is no different. You have to trade virtually before you put in the real money. Most people don’t even recognize the importance of trading virtual money before they put the real money. They end up losing money and eventually quitting. In fact those are the ones who often say trading doesn’t make you money.

Virtual Trading

Virtual Trading

There are many trading strategies available for trading. Some of them are price action, scalping, swing trading, position trading etc. Each has its own advantages and disadvantages. Every style requires a certain type of personality in you as a trader. For example, scalping requires quick decision making ability. If you can make decision within seconds scalping may suit you. Strategies like price action require lot of patience.

Price action trader doesn’t trade often. Instead they wait for the high probability set ups. You as a trader should know which trading style suits you the best. There is no better way to know all these styles than trading virtually and test these styles. Once you zero in on the trading strategy, start trading virtually with it.

Trading plan is another important aspect of trading. Trading strategy alone will not help you. The entry criteria, exit criteria etc need to be decided before you enter a trade. Once you finalize the trading plan, you have to stick with it. Do you want to experiment with different possibilities with real money? You should also test if the trading plan works well over a period of time. There is a lot of experimentation involved before you make money out of it. Virtual trading takes out all the risk involved in this process. You learn trading without losing a penny.

Start Trading Virtually now, using our Virtual Stock Market→

The important advantage of starting with virtual trading is that it minimizes the mental and emotional pain in your trading journey. If you start directly with the real money, you are surely going to lose it. You will suffer lot of emotional and mental pain. These are psychological aspects of trading. It is as much important as your trading skills. Virtual trading will help you understand and deal with this aspect of trading.

Successful trading is a long process. One should keep trading virtually till he completes 3 successive months of profitable virtual trading. Once you do this, it will increase your confidence. After the successful virtual trading, one should put half of the money initially intended in real account and start live trading.

If you trade profitably for 3 successive months for real, then only put the rest of the money in your trading account and increase your stakes. If at any point in real trading, you lose 15% of your account, you should stop trading live and go back to the virtual trading. Trade virtually again for 3 profitable months.

Trading is a damn serious business and it is definitely not for the faint hearted. There are various psychological aspects of trading which you should know as a trader. Successful trading requires a lot of hard work, patience and discipline. Virtual trading allows you to understand and develop these skills. Trading directly with the real money will teach you some hard lessons. Why test the depth of the water with both the feet? Start wisely and trade virtually.

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