Advantages of Demo Accounts

    Before you dive into online trading with a head and start to trade your own real money, the most important thing - try your hand on a demo account. According to its functional characteristics demo account does not differ from a live trading account. It uses exactly the same trading platform, as well as in real trading. The only difference is that you are trading with virtual money. Other characteristics like movement of exchange rates and financial instruments, making deals, technical analysis and installation of pending orders repeats the real account.

  The demo account allows the trader to get acquainted with the trade practices in the financial market, as well as to gain experience with the trading platforms. A demo account is an indispensable tool for sharpening trading strategies, systems, and automatic expert in the real market conditions.

  The only drawback of demo accounts that a lot of traders and personally I experienced is that you don't feel the real risk of losing money and you can allow yourself to trade irresponsibly. Good thing it quickly disappears when you start to trade on real accounts.

  In the future, when you become an experienced trader, you can also use a demo account. Since it's a great opportunity to test your trading system (strategy) on real data in real time, before applying it to real money. Professionals always recommend to test the new trading systems on a demo account, and only then use them in your real trading.

Trading Stocks. Is It Still Profitable?

Stock trading is basically buying and selling shares. Investments and return on investment аrе two main components of the trading process. This kind of trading has arisen with the advent of the stock markets, and these, in turn, appeared when companies decided to earn money by selling their shares. Speculation in shares, as well as gambling in general, may seem complicated and even confusing, but it is only at first glance.

Online trading - this is another way of making money online, and more and more people every year give it preference. Before you buy and sell stocks, you need to know exactly what the advantages and disadvantages are included.

 First, the stock market, as well as in other financial markets, the profit can be obtained through a minimum period after the investment of their funds. Secondly, with the help of the Internet and special software trading platforms, each trader has the opportunity to trade, no matter what corner of the world you may be. Finally, in the third, and traders and brokers can monitor, check and analyze the state of the stock market every minute.

 The main disadvantage is the relatively low profitability compared with Forex or futures. Another drawback is the inability of short transactions (transactions on sale), and as a result, reducing the potential profit. In addition, there are certain fixed costs, provided the stock market system and brokers, which you cannot avoid. Sometimes you need to have pretty large sum of money on your account in order to buy some stocks.

Work on the stock market through the Internet is much easier to conventional trade. Besides the fact that the commission is not so big, the process of trade is much easier and limited understanding of the interface of the trading platform. The lack of real live intermediaries is both an advantage and disadvantage of stock trading via the Internet, as sometimes professional advice is still needed.