Is demo trading necessary for beginners? (Part 11)

[Jade14]

From my perspective demo trading is the proper way a beginner can experience how live trading works. If a trader decides to trade in a live account without using a demo account, it will look like a betting game by just guessing to buy or sell at a particular period and by doing so there will be more losses than profit.

[Diaz]

Yes, Demo account is really important for beginners. I had to trade using a demo account for three months till I was familiar with the trading software and gain knowledge on real-time trades.

[K-2]

What Is A Stock Index?
A stock index is a group of stocks that are used to provide an indication of a sector, stock exchange or economy. Typically, a stock index consists of the top stocks from a particular exchange, and here are some of the most popular stock indices:
The ASX 200, the top 200 companies listed on the ASX by market capitalization.
The FTSE 100, the 100 largest companies on the London Stock Exchange by market capitalization.
The Dow Jones Industrial Average, the top 30 companies on the New York Stock Exchange and the NASDAQ.
The DAX, 30 major German companies on the Frankfurt Stock Exchange.
As a tracker of multiple stocks, the stock index itself has no inherent value. Instead, the index will move in points and reflect the share prices of all the underlying assets. Some stock indices will give equal weight to all the stocks they contain, while some will give larger shares a bigger advantage.

To trade stock indices, traders must use tracking funds or derivatives such as CFDs, futures, or ETFs. These products all offer different trading methods on stock index price movements without having to share multiple stocks at once.

How Do Stock Indices Work?

Stock index is an aggregate measurement of the underlying stocks that make up the index. Different indexes work in different ways. For example, the widely followed S&P 500 index is an index of the 500 largest US stocks. The committee selects 500 stocks represented in the index, these shares must meet certain criteria set by Standard and Poor's, the index provider and this includes liquidity, company size and industry group.

[Diaz]

Yes, it is the first tool a beginner should use to learn and get familiarized with the forex software, and the demo tool helps beginners develop skills and build strategies.

[landorra]

Yes, it is the first tool a beginner should use to learn and get familiarized with the forex software, and the demo tool helps beginners develop skills and build strategies.

Absolutely agreed. Learning forex without even touching a demo account is plain silly. On the contrary, the more demo accounts you destry the more confidence you will catch before dealing with the real thing. Never hesitate to do that!

[Guero]

I suggest beginners to start with a demo account because if you enter into live trading without understanding how the forex market works, it would be like gambling with the buy and sell price.

[learntotrade]

in my perspective, eventhough it is important but you don't need to spend a lot of times on demo account. Use demo account to learn the basics like how to use your trading platform, or how to actually open or closing a posisition.
Staying long on the demo account in my personal opinion is bad because of lack of emotions, you don't really care if you lose your money in demo account, and if you stayed too long on demo, you can carry that mindset into your real trading and that is bad.
once you are familiar with your trading environtment, it is better to find a trading contest, paid forum, or even deposited tiny amount of real money into cent account to practise with real market and all of the emotions in it.

[Ad@m]

Yes, Demo trading is necessary for beginners because it is the first trading tool used to understand how live trades occur in the forex market and gives you the opportunity to build new skills and strategy.

[sowyer]

Demo and live trading are not exactly similar but demo trading helps beginners to grow their knowledge on forex in depth and also allows them to build various trading skills and strategy to avoid loss.