Demo trading platforms are very useful for new traders with learning experiences as well as for old traders to test some new strategies on live market without losing actual money.
Demo trading allows us to practice and get comfortable to a new strategy and give us confidence confidence before testing with real money.
To be a successful trader,
1st step is Back testing.
Now, if you are following a discrete method and trading visually using charts, or you are tape (price quote) reader or you are trading dynamically on various scripts using tv news or events etc then there is no such option to back test it using old data. A live demo trading platform is the best option.
2nd step is executing plans instantly by placing orders quickly in dynamic market which needs lots of practice.
Traders can practice this step using demo trading account without loosing real money. You must know trading is not easy. And in any profession you face difficulty during during days when your main goal is try get learning experience rather than earn a good salary. So this apply to trading also, during initial days when are learning there is more chance to lose money and most of traders quit as beginners as they lose their money fast during learning process.
So a demo trading platform can help such beginners.
contains risk management, money management etc which a trader can also try to achieve using demo trading platform without loosing real money.
Learning trading especially risk management and money management is a lengthy process which a trader can learn by trading in dynamic live market. During initial days also a trader have no idea how and where to average trade and how important is partial profit booking. A trader can learn such things slowly without loosing money using a demo trading platform.
And after gaining some experience of above 3 step using a demo platform if a trader enter to real trading with real money to achieve the final and most difficult 4TH step then the chance of success will definitely increase.
The 4th and final step is, trade with real money and by controlling hope, greed and fear gain the ultimate trading psychology. This is most difficult and most important final step as we all know it is rather easy to make money using back testing on a strategy using bodes.
But people starting trading with real money directly above mentioned 4th step without even gaining an edge on first 3 step are losing easily and rapidly.
So to help a large number of trading community a fully functional demo platform is must.
There is also a clear advantage of demo platform than just backtesting a strategy which is as follow.
Such programed back testing don’t involve real bid ask spread, and most importantly slippages, so not actually show the real possible outcome.
A demo platform can actually teach a trader most part of successful trading except the final and most difficult part emotional attachment with real money. But without learning the basic parts of trading and start trading with real money are making things complicated.
So, I request Nithin and Zerodha to launch a Demo Platform for your traders.
I know it will add up a cost so you can charge a nominal 6 mohth or yearly subscription and make it optional. Using that you can help the trader community and earn a good amount of money too.
I know many beginners try and fail and out of market quickly. You can retain them with demo trading account with a nominal yearly subscription say, 299 for 6 month or 399 per Year. You can make a very big amount as you have very big amount of in active traders who are mainly inactive bcoz uncertain about outcome.
@nithin read the above post and let us know if it is possible to launch a Demo trading platform to help the trader community.
I take my time to give you the idea bcoz as a seassional trader I have faced such difficulty in my initial years and missed the presence of a good demo trading platform.
As a number one brokerage house you can launch a Demo (Virtual) trading Platform to help the trader community and increase your revenue with a nominal yearly subscription say, 299 for 6 month or 399 per Year.