Tag Archives: social trading

These rowers practice for hours in order to pull the oars in synch

Is Demo Trading Worth It

My Answer To The Question, Is Demo Trading Worth It?

I have to say that yes, demo trading is worth it. It is the best place to get real world trading experience and a tool I still use today. Yes, the giant of technical analysis and trading that you see before you is indeed a demo trader. I do it for a number of reasons but the top of the list has to be for safety. Demo trading provides a level of safety for my real-money account that you just can’t get anywhere else. Why is this? It is because I know better than to experiment, test or make wild speculations with my real money. Having the demo account provides a place for me to make those trades that don’t fit my general strategy thereby providing a layer of protection from the market and from myself.

Practice Makes Perfect

There are a number of reasons why demo trading is important. For a newbie it is important because it is where you learn the mechanics of trading. Trading demo answers a lot of questions, questions like what is a position, how to you buy it, what does it look like when it’s open, what does it look like when it is closed, how does money management work, how does money management affect my trades and many many other questions a newbie or inexperienced trader may have.

  • Look at the picture above. I choose this one because it is a great example of how demo trading can help you get in synch with the market. How  many hours of practice do you think these guys put in to be competitive?

Once the mechanics are learned, the demo account does not lose its importance. It also provides a training ground and launch pad for trading real money accounts. The novice trader can use the demo account to practice strategies, learn and study the market until they know it inside and out. A friend of mine, Okane, recently said something that I have found to be perfectly true. Trading the demo account, and studying the market, can help you develop a kind of sixth sense that will lead you to more profitable trading.

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That is another top three  reason why I like demo trading. It helps you get in tune with the market. I can readily admit that I am not always in tune with the market. Sometimes I have winning streaks, sometimes I have losing streaks. The demo account helps because when I realize I am on a bad streak, or just out of tune with market direction or churn, I can switch and start trading there. Then, when I am back in tune I can move my trades back to the real money account. Believe it or not this is a really valuable tool but one that requires a certain amount of self control to use.

The number one reason I like my demo account is for accountability. It’s very easy to look at a chart and say, “I think the market is going up” or “I think the market is going down”. It is something else entirely to to say that and then act on it. Even writing it down is better than nothing but with a demo account it more real. You see the trade in the account, you see if it wins or loses and you see if your balance draws down. It may be a fake balance but losing points is losing points, if you want to win as a trader then you have to be able to win with demo money as well as real money.

Where To Find Quality Demo Trading

Unfortunately most binary options brokers don’t have quality demo trading. If they do it usually comes with a catch. Communitraders 2.0 is the demo trading platform I use for binary options. It is full service social trading platform that is completely free. It includes forums for talking to other traders but more importantly a complete demo service.  The platform is intended to be compatible with most binary brokers so you can trade calls/puts, one touch and boundary options on a full list of assets with a wide range of expiry. If you want you can keep your trades to yourself, and track them on your profile page, or you can share them. Sharing them means other traders may ask you questions or give advice, or just say “hell yeah, great trade!”.

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You can also start a trading diary or blog with the platform. All that takes is starting your own thread on the forum. This is what helped me get really good. Not only was I keeping track of trades on the demo, I was putting them out there for all to see. This made me focus twice as hard on making good decisions, use proper money management and being as right as I could be with my analysis.

Communitraders  is looking for traders, demo users and bloggers right now. Here is a link to more information.

Bloggers Wanted!

LBinary social binary options trading platform

LBinary Social Binary Trading

Social trading is a fast growing phenomenon and one that is ideal for new traders. It is the fusion of social media resources like forums and chat rooms with binary options. At heart it is community based trading.  Social trading allows interested people from around the world to interact, share, learn and trade binary options in an environment safe from affiliate marketers and scammers.

Forex brokers recognized the benefits of social trading long ago. In fact, this form of a trading has gotten so big in the forex industry that there are now at least a dozen dedicated social trading platforms. Some binary options brokers have begun to venture into the social arena. Those of you who know me will also know that I can be found on the Communitraders Social trading website, an off-shoot of Binary Options That Suck DOTCOM.  I also helped to write the Ebook, Forex Copy Trading Survival Guide so I actually know what I’m talking about.

LBinary Social Trading Review

LBinary, operated by Live Binary LTD is the leader in binary options social trading. They have incorporated a copy trading system into their platform so that traders can follow pro traders or build up their accounts and become pro traders themselves. For now, the platform is very limited but yet still offers the best copy trading available through a binary options broker.

LBinary

Traders are ranked in a leader board format and have several statistics handy for you to examine. These include the traders name, amount won, # of positions, success and number of followers. When you go and check it out you will notice that there are a lot to choose from.  To the side of each persons information is a tab where you can choose to follow the trader.  I like the way it is set up. You can follow each trader for a day, a week, a month, a year or other lengths of time defined by the platform. This way you can follow someone for a test period before taking the plunge and following them in earnest.

Top traders are ranked by asset, win rates and number of trades.

Top traders are ranked by asset, win rates and number of trades.

I also like the way they have the investment amount set up. Of course you can choose to go unlimited and make whatever trade the person you are following makes. I don’t recommend this at any time, it is way risky and could easily wipe out an account. Instead pick from a list of amounts ranging from $50 to $3000 per trade. This figure can be set as an amount per trade or as a limit, meaning you will make identical trades up to that amount.

The leader board can be filtered to help you find the best traders to fit your style and  needs. The first screen you will see will be what they call “cross asset” traders. These are traders who don’t specialize in only one asset. You can filter by any asset available on the platform.

My Last Thoughts On LBinary Social Trading

I think that Lbinary’s social trading platform is a great start and one that can be built upon. The only two things I can see that can be counted as a negative at this time can both be corrected with ease. First, there is no forum. Without a forum there is no real social aspect to the platform which makes it strictly copy trading. A forum would also give the pro traders a chance to build a profile and tell us how and why they do what they do when they are trading.

The second is that there just aren’t that many traders, and not very many of those have built up much of a record yet. I can overlook that because the social aspect of the platform is still new, time will surely  fix it because this is a good broker and a good feature. Anyway, to get the best of social trading forums you need to be using Communitraders. Who know’s, maybe at some time in the near future the full version of CT will include interfaces with reputable brokers like LBinary.

LBinary

Quick Review Of LBinary

LBinary is a Spot Option white label operated by Live Binary LTD.  The company is located in the Seychelles and is not CySEC regulated. This is good news for at least one reason, they allow U.S. traders. As far as being a Spot Option brand goes it is one of the best. If you like the trading platform then this broker is a good one to choose.  It has all the typical options available from this class of broker including high/low, one touch, 60 seconds, Options Builder and the Open Platform.

LBinary is a top Spot Option brand.

LBinary is a top Spot Option brand.

Assets and Availability

LBinary also has one of the most complete asset lists of any broker. There are over 100 international stocks, more than a dozen major currency pairs including Bitcoin binary options, 20 international stock indices and 6 commodities including gold, silver, copper, oil, wheat, sugar and coffee. Each is available during its normal trading hours; trading can be done nearly 24 hours a day, 7 days a week depending on which assets and options you are using.

Deposits and Withdrawals

Deposits can be made in US dollars, British pounds or euros. Minimum deposit is $250 with no maximum if using wire transfer. Credit cards and debit cards are limited to $5,000, Western Union transfers to $10,000.  Withdrawals to credit cards are limited to the original amount deposited but wire transfers have no maximum limit. The minimum withdrawal is $500 for wire with no minimum for credit or debit cards.  There are no fees for CC or debit withdrawals but $25 for wires.  Once your paperwork is processed it will take up to 2 full weeks for withdrawals to process and post to your bank or credit account.

Bonuses

There are bonuses available but I never recommend taking them, even with a reputable broker like this. The bonuses usually come with stipulations like a 30 times deposit+bonus trading minimum like this one. This means you have to trade your total account 30X its value before you can withdraw. This is OK if you don’t want to make any withdrawals for a long time, or can clear the bonus really fast. Usually what happens is that trying to clear the bonus will drive you to trade more than you should and lead you to lose your money.

Trader Education

LBinary has one of the best trader education pages on the internet. It consists of a video program and on page information that ranges from the usual introductory stuff you would expect through candlestick charting, strategy, trader psychology and money management.

 User Reviews

There are not very many user reviews on the internet, which is a good sign in disguise.  I think you can agree with me that if it was a bad broker the internet would be filled with complaints. The obvious lack of these complaints is evidence the broker is doing something right.  I use LBinary and like it.