Importance of Demo Accounts
- Thread starter Adam Smith
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Demo trading is an important tool in trading. It allows you to sharpen your trading skills, test your strategies and learns from the virtual losses. Go live once you have started earning profits consecutively in demo trading.
But keep in mind that when you trade with REAL MONEY in live account you are more prone to emotional trading which can lead to losses. This aspect always remains missing in demo account.
But keep in mind that when you trade with REAL MONEY in live account you are more prone to emotional trading which can lead to losses. This aspect always remains missing in demo account.
Yes, you can go for live trading only if you are earning consistent profits in the demo account. But make sure always start with small account initially. As emotions will always play a major role while trading in live account and to avoid huge losses it is suggested to start with small deposits.
We must go through this process for us to succeed in the market, else things might prove strange when we go live without any formal practice. And it is only demo trading I have seen that can give us that.
Demo trading account has several benefits attached to it. If you thinking to make good amount of money through Forex markets. I would recommend you to open a demo account and pass the learning stages patiently & carefully.
1. Discipline: Maintain discipline in demo trading because if you are not serious with your demo trades. You would not be okay with live trading. You can lose as quickly as you lose in live trading.
2. Success in demo account: Make sure you keep on trading on your demo account until you make winning trades and achieve something in it.
3. Account size: Do keep the account size of your demo account same as you wish to have in your live account. It makes you believe you are trading with your original funds and want to earn from it.
Do keep in mind that your demo has to behave exactly like live account. The demo account might be absolutely free of cost but in reality it is not free. There is a fee attached which is your time invested.
1. Discipline: Maintain discipline in demo trading because if you are not serious with your demo trades. You would not be okay with live trading. You can lose as quickly as you lose in live trading.
2. Success in demo account: Make sure you keep on trading on your demo account until you make winning trades and achieve something in it.
3. Account size: Do keep the account size of your demo account same as you wish to have in your live account. It makes you believe you are trading with your original funds and want to earn from it.
Do keep in mind that your demo has to behave exactly like live account. The demo account might be absolutely free of cost but in reality it is not free. There is a fee attached which is your time invested.
Not many would agree with this concept, but demn such one because they won't be there to help out when you are somewhat lost in the process.
I agree! I know everyone needs a demo account especially for no experience with trading but it is not a guarantee that having a demo account will give you exactly the result you need to know.
I know it is not closely related, but definitely we can get some closure into the market using demo account. At you should be able to know a bit of what you want to deal with in the market, and demo can give you that.
Yes they are, but can only give you what you want when you are serious with it. We can easily joke around and be carried cuz it is not done with real money.
You something; forex is not where you joke around, neither is it gambling based on 50/50 chance. You have to be very careful and do things in proper sequence, one of which is demo trading before you move on.
Being serious with demo trading can never be overemphasized. Never will simulated trading be same with real, but you can make as nearly as one with your seriousness while using it.
When you don't trade, react like you were trading real!
True, and sometimes I feel that it isn't just for newbies but for all. Here is what I mean; you can learn something new tomorrow and would want to test it without fear, demo can come in handy.
True that! one should always invest the amount one can afford to lose, especially in case of a newbie trader.
Go slow and steady!
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