Any new trader or investor that learns about technical analysis for the first time wants to practice applying it in real financial market environments risk free.
Practicing technical analysis is a great way to speed up a trader or investors education on the topic.
To practice using technical analysis:
- Use free charting and technical analysis software tools to practice reading and analyzing the price charts of various financial markets
- Open a demo trading account with a trading broker or charting provider to practice applying technical analysis in real time completely risk free
- Take a technical analysis quiz to practice and test your knowledge on technical analysis concepts like technical indicators, chart patterns, technical analysis theories etc.
- Create a technical analysis trading journal with a before and after section to practice and test how good you are at reading markets through technical analysis
- Browse through 1000’s of price charts to practice spotting chart patterns
These are the ways for a new trader or investor to practice using technical analysis in live market environments without risking real capital as they test their knowledge and education.
Use Free Charting And Technical Analysis Software Tools For Practicing
One of the best ways to practice using technical analysis is to use technical analysis tool providers.
This enables traders and investors to practice applying various technical indicators and chart patterns in live financial market environments.
Example charting software tool providers that enables a trader to practice using technical analysis include:
- TradingView
- Stockcharts.com
- TC2000
The free options are more than enough for practicing technical analysis.
For example, traders and investors can use TradingView’s software to practice applying 1,000’s of technical analysis indicators and also practice trying to find different price chart patterns like ‘triangles’ or ‘bull flags’ in different capital markets.
A technical analysis tool also enables traders and investors to practice using overlays like Fibonacci Retracement Levels and Moving Averages to price charts and see how the market reacts to them.
Use A Demo/Simulated Trading Account To Practice Applying Technical Analysis Risk Free
Another method of practicing using technical analysis is to sign up for a demo trading account with a trading broker.
Trading brokers offer demo trading accounts that traders and investors can use to practice using technical analysis in a live market environment without risking real money as they practice.
Examples of trading brokers that enable a trader or investor to practice technical analysis include:
- Interactive Brokers
- eTrade
- TD Ameritrade
Using a demo or simulated trading account from these brokers is great because it enables a trader or investor to practice buying or shorting financial markets based on technical analysis trading signals or technical analysis strategies.
This helps traders practice applying technical analysis risk free.
Take Technical Analysis Quizzes To Practice And Test Using Technical Analysis
Another method of practicing applying technical analysis in financial markets is to take quizzes.
Quizzes will help new traders practice testing their knowledge and skills on technical analysis. These quizzes will also highlight areas where a trader may need to work.
Technical analysis quizzes will help traders practice testing their knowledge on:
- Beginner and advanced technical analysis concepts
- Technical analysis theories e.g. Dow Theory etc.
- Technical trading indicators like Volume Profile, VWAP etc.
- Price chart patterns like Head & Shoulders, Wedges, Bear Flags, Pennants etc.
- Candlestick patterns like Doji, Engulfing Candlesticks, Hammers etc.
Use A Trading Journal To Practice Using Technical Analysis
Another way to practice using technical analysis is to write technical analysis setups into a trading journal.
A trading journal like Tradervue or Edgewonk can act as a library of all the technical analysis journaling a trader has done in various financial markets to see how accurate they are at reading the markets from a technical analysis perspective.
The trading journal is a great way to practice using indicators and visibly see any improvements in your technical analysis knowledge and skill level over time.
Browse Through Price Charts Of Markets To Practice Spotting Chart Patterns
A trader or investor should browse through thousands of price charts from financial markets including indexes, futures, commodities, currencies and stocks to practice finding chart patterns in these different markets.
Browsing through the various different markets is great for practicing technical analysis because it helps a trader to test their skills of technical analysis in multiple markets as some markets react differently to chart patterns than others.
For example, a currency market chart pattern can be less clear due to volatility compared to some slower moving index markets like the S&P500.
Conclusion
These methods are the best ways to practice using technical analysis indicators, chart patterns and technical analysis theories risk free.
Once a new trader or investor is comfortable using technical analysis to help guide trading or investing decisions, they can move on to using technical analysis for live trading or investing.
Using a demo account or charting tool software provider to practice using technical analysis will speed up the learning process substantially.