Spread Betting Demo Accounts 2013:

cityindexdemoUsing Spread Betting Demo Accounts Wisely

You will still find that spread betting demo accounts are extremely useful if you learn how to use them proficiently.For example, you can utilize them to confirm the performance of your trading strategies without incurring any financial risks. When doing so, you should attempt to simulate live spread betting trading conditions as closely as possible. You can accomplish this task by utilizing the main features of your strategy, such as its risk-to-reward ratio, money management and stop-loss protection, etc.

In contrast, if you just use your demo account in a haphazard manner then you will not prepare yourself properly for live spread betting.

Best Spread Betting Demo Accounts 2013:

A couple of best demo accounts at SpreadBettingCompanies.co are now briefly introduced:

1.   City Index Demo Account

The City Index demo account (read the full review) enables novices to register for a demo trading platform backed by a virtual balance of £2,500.  The benefits of such a facility are that you will then be able to practice spread betting; enter and exit bets, activate stop-loss orders and become totally familiarized with this firm’s trading platform software without risking your own funds.

You can upgrade your demo account to a real one at any time during the first couple of weeks.  Gaining access to a City Index demo account is relatively simple. Just visit this broker’s website and hit the “open demo account” link located towards the bottom of the homepage.

2.   Capital Spreads Demo Account

This broker’s demo facilities (read the full review) will enable you to experiment with the full functionality of its trading platform without risking your own money. You will be provided with a virtual account balance of £10,000. Note, however, that the demo account only supports a selection of the tools available with live accounts. The demo account is backed by a user-friendly and comprehensive on-line user manual which will help you make rapid progress learning to place spread bets and acquiring a sound understanding of the company’s trading platform.

When you are demo-trading, you must match live conditions as closely as possible so that you will experience the same psychological pressures. For example, you must try to subject yourself to spreadbetting conditions that produce the same levels of emotions as live trading, such as greed and fear. If you do not make the correct efforts then you will find that demo trading produces very few stress situations and consequently will be of little use preparing you for the ordeals ahead.

Recording your Spread Bets

Many experts advise that you should record the details of all your spread bets when you are demo trading as a means to assist you in focusing your attention. In addition, this practice would then enable you to study this data at a later data in order to identify any patterns to your trading style. You can achieve this objective by considering the following:

1. How good are your entry and exit strategies?

2. Does your spreadbetting strategy enable you to naturally trade with trends?

3. How well did you handle fundamental data events?

4. Could you have prevented any losses?

5. Did you succumb to emotional pressures, such as fear, which made you move your stop-loss positions?

6. Did price advance as you expected after you opened new spread bets?

7. What was your largest loss?

Demo to Live Spread Betting Account

You must understand that you will have to contend with a significant transition when you progress from demo to a live spread betting. Consequently, you must devise methods so that you can utilize demo accounts properly in order that you will be able to take advantage of the many tools and facilities that they provide. For example, you can use demo accounts to study technical analysis as well as familiarizing yourself with all the features of your new spread betting trading platform.

You can undertake meaningful technical tests by studying charts, identifying trends and using technical indicators, such as supports and resistances, etc. You must confirm that your spread betting broker will provide you with the identical trading tools that you will be able to utilize once you go live. After you have gained proficiency using your demo account, you can improve your stimulation by using the following concepts:

1.      First choose a particular asset to trade. You must then ensure that you conduct all your tests using just this security until you develop confidence and a good feel for its trading dynamics.

2.      You must adhere strictly to the concepts of your spread betting strategy in order to test its ability to identify prime technical features such as trends and price formations, e.g. head and shoulders.

3.      You are advised to experiment with as many technical indicators as possible in order to detect the best fits for your strategy.

4.      You must only enter and exit positions if your strategy flags you to do so. Do not perform such actions purely on your whims or gut feelings.

5.      You must not cave in to your emotions and move your stop-losses. Instead, remain faithful to your initial selection as identified by your spreadbetting strategy.

6.      You are recommended to record all the major details of each of your bets so that you can study them at a later time.

7.      If after your tests you decide to make any changes or tweaks to your strategy, you must then re-evaluate its performance by calculating its new win-to-loss ratio and expectancy value.

You must take heed that if you do not adopt a professional attitude, then your demo trading will be nothing more than a complete waste of time. Instead, if you use the concepts advised above then you can realistically assess your spreadbetting strategy and improve your trading abilities.

Money Management and Demo Testing

You should also take the opportunity to utilize your demo account to evaluate your risk and money management strategy. You should focus your attention on this subject because not only is it very important to your long-term spreadbetting success but also because money management is a skill that is often mishandled or ignored by many novices.

Specifically, you should heed expert advice that recommends you should risk a maximum of 2% of your total balance per trade. If you exercise this important concept during your demo trading then you can gain some valuable experience in its usage.

You must aim to stimulate the emotions that you will endure when you start spreadbetting live in order to confirm whether you will adhere to your money management strategy or abandon it. For instance how did you fare if price started to move rapidly against your open positions during demo trading? Did you panic and adjust the positions of your stop-losses? Did you experience the impacts of greed that caused you to alter your targets at the prospects of increased profits? If you utilize your demo account properly, then you can determine to what degree you violated the concepts of your money strategy once pressure began to increase.

As you will not be risking real money with your demo account, you may drop your guard and adopt a more lackadaisical approach. However, you must resist this tendency otherwise you will not train yourself to withstand the psychological pressures that you will need to contend with when live.  You can use the following concepts to help you achieve the most out of your demo trading:

1. You will be supplied with a default dummy balance after you have opened a demo account. However, the value provided is normally unrealistic as it could be in the region of £1,000s. If you will not be able to match such a large sum of money when going live, then you will not simulate real conditions if you proceed to trade with it. Instead, you must adjust this number to equate to the amount that you will bring to the table. As a result, you will then be able to produce your future spreadbetting conditions much better.

2. Adhere precisely to the concepts of your trading and your money management strategies when you open positions using your demo account. The more experience that you can obtain equating to live conditions will prepare you better for the transition to live spreadbetting.

3. Again, record all your results so you can assess how effectively you complied with your trading and money management strategies. If you can also utilize this data to identify treads and features of your trading style, then these experiences will help you immensely when you go live.

You must appreciate that you will have to contend with more intense psychological and emotional situation after you commence live spreadbetting trading. This is because the financial markets can generate significant levels of volatility producing price spikes and surges.  Consequently, you will have to formulate serious decisions quickly and constantly in order to protect your equity.

Under these conditions, your stress levels can climb rapidly causing you to abandon your spreadbetting strategies. If you do not utilize demo trading well then you will not receive any training in how to handle such difficult conditions effectively. In contrast, you must always imagine that your own money is at risk which should then cause your adrenaline to start pumping. As such, your prime objective is to learn how to retain your composure under pressure.

This is why you are advised to document your feelings during demo trading so that you can identify any weaknesses in your armory. For instance, if your resolution is not sufficiently matured to cope with live spreadbetting trading conditions then you could freeze if the pressure starts to overcome you which could prevent you from formulating quality decisions.

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