Best Feature in an Online Trading App
Several interesting features are available to investors that use an online trading application. Most of the features deal directly with investing, but some are focused on customer service and your ability to deposit or withdraw capital. Most applications have charting capabilities as well as educational portals. Whether you are novice traders or advanced investors having features that allow you to learn are the best features available on a trading app.
Learnings How to Trade
Before you begin to risk your capital, it is especially important to understand that to make money you need to take a risk. Risk is the amount of capital that you could lose when you trade. It is not the actual loss but the theoretical loss. To learn about risk, you need to get a good handle on trading and investing and understand why you are putting your capital at risk.
Most online trading brokers will provide customers with an educational portal. This is a section of their trading application that allows you to learn about trading and risk management. Usually, brokers provide several categories including the nomenclature associated with trading, strategies, and risk management. You should have access to articles as well as videos that will allow you to learn the basics of trading. Once you have explored an educational portal and feel comfortable that you have covered most of the sections within the portal you can move on to developing a trading strategy.
Using a demo Account
A trading strategy is comprised of many concepts. The most important step is determining the amount of risk you plan to take. You can then move on to exploring different ways to enter and exit the market and the criteria that need to be in place for you to place-a-trade. Your entry criteria could be based on macro events or fundamental analysis or technical analysis. You should determine in advance where you plan to enter and exit a security, as well as any type of trailing stop loss level that you might employ to manage your risk.
One of the best ways to test to see if your strategy can be successful is to use a demo account. A demo account is like your real account, except the money that you will use to trade is demo money provide to you by your broker. This will allow you to test drive the platform without having to risk real capital.
You should test the execution module that your broker has with the demo account to see what your positions will look like once you buy a sell a security. Since there is no real capital at risk, it does not make a difference if you make a mistake. You should play around with all the different ways to execute a trade including trading directly from a chart.
Also, a demo account allows you to test the strategies you plan to use before you risk real capital. Every time you come up with a new trading strategy you should take advantage of the demo account to see if the strategy works. Do not rush the process. Make sure that your strategy works in real-time before you begin to risk your real money.
The Bottom Line
The key takeaway is that the most important feature of an online trading app is the demo account. It allows you to take the information you have learned through an education portal and test drive these strategies to make sure they work in real-time before you risk your hard-earned capital.
