Forex Demo Account
– As we said in the previous step, a forex demo account is an essential factor in choosing a broker. After you settle with a forex broker, don’t get directly into the real deal. First, you should create a demo account, and see how it works. To thoroughly understand the way the system works, you should make many trials on this “forex demo account” for a long time. What should you pay attention to during this time? That’s what we’re talking about:
If this is the first article you found, check the previous steps.
In the previous steps of this guide to start forex, We talked about:
►1 Doing Your Research and Training (Step 1)
►2 Creating a Trade Strategy (Step 2)
►3 Choosing a Forex Broker (Step 3).
Step 4: Spending Time on Forex Demo Account
The forex demo account is basically the same in every way with the real account, except the money you trade here is virtual, like play money.
When you log into your forex demo account, you will see your broker’s forex dashboard. You should explore menus and get familiar with this forex dashboard because it is the same forex dashboard you will see when you move on to your real account.
In this demo forex dashboard, you can do your trades exactly as you will do in your real account. You don’t need to worry about the money you lose in the demo. Here, you can test the “trading strategies” you created earlier and see if they work as you want, tweak them and try again. You can fail in a forex demo account, as many times as you need to get better in trading.
It’s not a waste of time
Of course, this virtual aspect of the demo account can get boring after you start to earn great virtual profits with trades that you make. Since it is just play-money, you cannot get this money for real. Many people lose interest in demo accounts in a short time because of this. However, don’t feel like your effort here goes for vain. Every trade you have done here made you a better forex trader. You have earned more something that will make you earn more money in the long term.
If you see the demo account as a waste of time, perhaps you see forex as a way to getting rich in a short time. This mentality is wrong. Forex is a job you will do for the long years to come. In the long term, it can make you earn huge profits. However, first, you need to make your trading career stable enough to see those days.
So, don’t be impatient, spend as much as time you can in the demo account. What you get here is basically “the forex experience” that makes the difference between you and veteran traders, and you can get it in the forex demo account for free and without risks. Some people may claim that you should train with real money because real money motivates you and makes mistakes more memorable. However, you will make real trades when you are ready anyway, training with real money just makes your training shorter, and the risk of losing your money disturbs your focus on learning.
Don’t forget to note everything
It is important to mention here that one of the most useful things to do for following your trades is keeping everything recorded. Take notes about every single trade you do. Write the quotes, how many units you trade, the dates, your ideas, earnings and loses. If you know how to use an Excel-style software, spreadsheets are great for recording these type of information. If you don’t like those programs, you can use any method that works for you. A text file or a physical notepad is enough to, as long as you keep it organized.
You will appreciate these notes in the future. You will look back to them and see what you have done right or wrong after you get some experience. Also, you can use this information to create new strategies by combining the right decisions.
Spend your time in the demo, see if your strategies make a profit, see if you really learned how to follow the market and analysis, get used to recording your every trade. Practice sticking with your strategies long enough to pass through its “losing streak”. This demo accounts will be useful even after you are a veteran, in the means of testing new strategies. However, initially, when you start to feel like your trading strategies don’t fail and you don’t feel like a beginner anymore, it means that you are ready to do some real trades with real money.
Continue To The Next Step:
– Step 5: Do Your First Real Trades –
This article about Spending Time on Forex Demo Account was the fourth step of “How to Start Forex Trading” topic. If you want to read more detailed explanations on “Forex Demo Account” topic, you can click on the related link buttons on this page.
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