A trading platform is a software product that provides investors with several tools to start the process of trading. A trading platform allows you to execute trades, manage risk, and perform technical and fundamental analysis, as well as test drive your strategies. A good trading platform will also have an educational section that allows you to either watch videos, or read articles on specific topics related to investing. There are several steps you should take when you are using your platform to learn how to trade. You want to make sure that you find a trading platform that has a robust education section as well as a demonstration account to make sure you learn how to trade effectively.
Trading education is an ongoing process. Even expert traders are learning new things consistently. Your forex broker should provide an educational section on their trading platform. This section could include information on the different securities that are offered as well as the process of transacting. The education section will also describe what leverage is and how to apply for a margin account.
On your trading platform you will be able to learn about the different way traders determine what trades to place. The education section will have information on technical analysis. This includes support and resistance information related to trend lines and moving averages. It will also describe momentum, trend following and mean reversion technical indicators. You can also learn how to manage risk from the education section of your trading platform.
Using a Demonstration Account
One of the most useful tools on your forex brokers trading platform is a demonstration account. This is an account that will allow you to test drive your strategies without risking your own capital. Your broker will provide you with demo money which you can use to see if your trading strategies have merit.
Each time you come up with a new trading technique, either one you learned through your broker’s educational portal or on your own, you can use your demo account to see if it works in real time. In many instances, a trading strategy will appear to work, but when you add in the amount an asset moves when you are trading, called slippage, as well as commissions (bid offer spread), the trade does not work the way you thought it would.
Evaluate Technical Analysis Tools
Technical Analysis is the study of past price action, and your broker should have a robust technical analysis portion of your online trading platform. This will allow you to generate studies that have worked in the past and could work in the future. You can also use technical analysis to generate a risk management profile that helps you reach your financial goals.
Your broker’s online trading platform should have several parts to it that will help you learn how to trade. You should be able to take advantage of an educational portal as well as a demonstration account as well as the platforms technical analysis features to learn how to trade.