Strategies – What should I try out with my CAPEX online broker demo account?
As you’re starting out, it’s important you don’t get too caught up in technicalities. Our demo trading platform will sort out the complicated stuff, you just need to focus on choosing a Trading strategy that is effective, and suits you. Here’s three popular trading strategies that you might find useful with your online broker demo account at CAPEX.
Day Trading is exactly what it sounds like. Buying and selling trades in one day, and seeing how much funds you can come away with. No positions are held overnight – everything is closed at the end of the working day. Though it is regularly done by professional traders, seeing how you function putting aside a working day to day trading can be a great learning purpose.
It also works better in more fluctuating and flexible markets – such as stocks, and crypto – as you’re more likely to see a rapid incline in profit. Day trading would not suit the likes of indices, bonds or forex – there is too little to gain by closing a position every day with stable trades such as these.
We’d recommend day trading strategies to any of the online broker demo accounts who want to see their demo funds rise exponentially – and get an idea of what it’s like to open and close positions on a daily basis, with proper analysis.
Position trading is more analytical. Position trading is when you use long term charts – daily, weekly, monthly – to analyse any potential trends or growths in particular trades, and try to determine the current market direction. Position traders will use their analysis to hop on the ‘wave’ of the trend they have studied, and try to ride that wave until its market peak. Position trading would suit someone who is patient and willing to wait out a trend, by holding a position and allowing it to see profit.
So, when you are trading with a demo account, you have to trust in your own analysis of the market, and trust that your analysis is correct. Position trading can work across any trade, but it’s often used when trading in forex. If you want to get into currencies and see the best results with your online broker demo account, we’d recommend you try to learn position trading with your demo account at CAPEX.
Swing trading, in many ways, is the opposite of position trading. At the end of trends, the market usually faces some unpredictability and volatility while the next trend tries to establish itself. Swing traders make the most of this unpredictability, by buying and selling whenever they see fit based on how volatile the trade becomes.
Here is how to swing trade. Swing traders will hold for short periods of time, but usually hold more than a day until the volatility settles. Analysing these end of trend moments usually utilises a lot of study, and algorithms which try to determine the direction of the market next.
We’d recommend swing trading for those who want to get into the likes of cryptocurrency, which at the minute is a huge trend. It will inevitably face a slump, and using your online broker demo account at CAPEX to try to predict this could be great analysis for you.
Conclusion – Plenty to try out with your online broker demo account!
All in all, there’s plenty you can do with your CAPEX demo account balance. With all the features CAPEX offers you: The best software, a huge variety of trading instruments, and a webpage teaching you how to trade is all at your disposal. What instrument you choose is up to your preferences – Forex and indices are more stable, but steady. Your chosen trade method completely depends on your trading preferences. Sign up today to CAPEX, and you’ll have access to all the great features of the CAPEX demo account. You’ll be a day trader in no time!