Best Practice Account

23rd Jun by The Brass Monkey

14 comments 332 reads

Can anyone recommend a practice/paper trading account for equities.

I've been reading a lot of technical analysis books and want to practice trading before I start risking real money.

General advice seems to be to do this for a minimum of 6 months until you can find an edge, but frustratingly none point you where you can do this practicing.

Ideally I want to see close to live data so I can practice entry and exit and scaling into positions to determine if I would have made a profit or not also I'd like to be able to do some back testing.

I imagine this is something most traders would be interested in (everyone has to start somewhere) but I've not found it easy to find free or paid service which meet this simple brief,

Any advice would be greatly appreciated

Many thanks

TBM

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About the Author

The Brass Monkey

Premium Member

14 comments

N0vice1Nvest0r

23rd Jun

Tagging onto this, what is the benefit of using the "Funded" trading accounts?

Isnt it just another way of paper trading?? I got offered one a few months back, people made a big deal about it. But I just don't see the benefit apart from paper trading. Unless im missing something.

The Brass Monkey

23rd Jun

I might be wrong but I think if someone one is offering you a funded account they are in effect staking you. They put the money in (are takin the risk) you trade and get a cut of the profit, they keep the rest. There are usual targets to be met, if you succeed they will likely increase your account size, if you fail you get dropped. Its real trading with real money. Usually you would have to pass some assessments to prove you can actually trade, these firms don't just go handing out money to anyone. If you'd applied for such a scheme you'd likely be aware of what is in it for you, so I'd suggest if you've been contacted out of the blue and offered funding then its probably some kind of SCAM.

N0vice1Nvest0r

23rd Jun

It wasn't a SCAM, but thanks anyway. I didn't take it as still learning, But appreciate the input!

Like you say I'd rather earn my own money, than risk anyone else's.

jjis

23rd Jun

IG Index offer that see here: IG Demo Account seems to cover most things including equities.

I think CMC might offer something similar too.

Hope this helps.

N0vice1Nvest0r

23rd Jun

I do think most have a paper trading part. Freeserve let you do it as do Trading 212. I know eToro had one too.

I would go as far to say that they legally have to. I might be wrong on that part but, as you're giving them your money they want to cover their backs so that you have the ability to test your own strategies before investing. hence the mini T&Cs and questions you get before investing.

Personally I wouldn't obsess about TA. I did!!

Whilst I do think TA is improtant and you need to understand what is happening on a chart, I have found fundamentals are far more important.

One of my gurus used to point out that just because you're seeing a rising wedge doesn't mean that a black swan event cant send the stock down.

There are so many videos on Youtube to help you learn TA and you need to understand what the chart is showing you. BUT I wouldn't obsess with every bar pattern.

There are a hell of a lot of people on socials pushing day trading. They're probably sponsored by the market makers, lol!.

Like "The Naked Trader" says, understand the basics of a chart, but don't obsess about it.

One way to learn is on "TradingView" and test you style or strategy by using "Bar replay" at the top of the screen. It lets you replay from whenever you set the start date/time. Once set up you can get 30 days free usage of "TV", end trial and then set to a free account. Please make sure to cancel before the end of your trial by either adding a reminder or cancelling straight away. I cant remember which way it is on there, but theres no need for a paid account when learning.

Good luck and don't beat yourself, just try to learn from mistakes!

The Brass Monkey

23rd Jun

Thanks for the advice I'll have a play on Trading View.

Any book, podcast or Youtube recommendations on investing which you have found particularly useful?

N0vice1Nvest0r

23rd Jun

what are you actually after learning? The naked trader is a good place to start. Also Mastering the Market Cycle by Howard Marks. Numerous others, but good place to start.

Top tip, I listen at 1.5-1.7 speed to get through books quicker as some are very low paced.

N0vice1Nvest0r

23rd Jun

A good TEST and only a TEST!!!! is the crypto market as that is 24hr market! I DO NOT SUGGEST BUYING OR TRADING CRYPTO!!! But as this is a 24hr market you can test theories live.

Just be wary of timeframes. Small timeframes can be addictive! These can be are very very volatile! I trade mainly on the daily/weekly or sometimes hourly chart.

AGAIN DO NOT BUY AND TRADE CRYPTO EXTREMELY HIGH RISK!!!!!!!!!

This was only a suggestion to paper test your theories and strategies!

The Brass Monkey

23rd Jun

i've just got Howard Marks book the other night actually so looking forward to starting that. Working my way through 'A complete guide to volume price analysis' by Anna Coulliing which is good. I've rea d afew of the naked trader books but never really liked them.

Ps good tip on listening at faser speed I do that on Blinkist which is a book summary service that I supscribe to

Benson212

23rd Jun

Trading 212 have a practice Share Dealing account https://app.trading212.com/

N0vice1Nvest0r

23rd Jun

for me the Howard Marks one is a great base. Everything you need to know when starting out.

The compound effect and Thinking fast and slow are great books for psychology and understanding how starting small can build big over time.

N0vice1Nvest0r

23rd Jun

I also thoroughly enjoyed Reminiscenses of a stock operator by Edwin Lefevre.

Boon

23rd Jun

Also, it seems like Trading212 do fractional share trading, and also commission free?

So if you'd like to "up the stakes" a bit, one could fund say £100 into a T212 account and "practice" trading strategies with that play money.

Investingnewbie

Fri 2:30pm

I've used IG as a practice account.... and have never ventured beyond it! My persistent failure to turn a profit with spread betting means I steer clear.

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About the Author

The Brass Monkey

14 comments

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