This article is most important for the newbies in forex market. I am writing here about better way to practice forex trading. Hope this concept will help you to learn real and stable trading. Keep in mind, your practice is the main key to get better result in any sector. If you do enough and proper practice, your future result must be better, but if you practice in wrong way, how can you expect a better or positive result in the practical sectors?
Most of the forex traders start their forex trading practice with demo account. Even when I had started my forex life, did the same. Every one advised me to practice in demo for a long time before start real trading, but I am not suggesting you as like that. Because I am practical and I want, every traders start their forex life with proper way. I will not discuss with much explanation, I am just giving some important points here which will help you to understand the practical situation.
As a newcomer in the forex market, first you have to open a demo account to learn general and common rules i.e. how to open a position, how to close, how to use take profit, stop loss, trailing stop, how to use expert adviser, indicator, chart, different pairs etc. Meantime you have to find out a good strategy for your trading style. If you learn all of these rules and can handle any order, then switch to the real platform.
When you are opening a demo account, please do not accept big volume account balance, broker house will give you 50,000 virtual dollar even more whatever amount you want but that is a negative sign for your future. Just select $500 or $1000 balance in your demo account and start practice. My suggestion, if you have plan or capable to invest in real dollar $500, then take $500 in your demo account for practice purpose. If you practice with 50,000$ in demo and start live trading with $500, you never can control your trading strategy or emotion and result you will be a looser.
Please note, demo platform and real platform is not same. You can make good profit in demo account but same time you can loss in your real account. Why? Because, in real platform, you have to face spread difference, re quote or off quote issues, slippage, raw spread etc. But in demo platform, you will not face these issues and result will be more profitable than real. Another point, if you use demo account, whatever demo amount is there, if you loss all amount, not a problem for you because that is not your real money. That is the reason, maximum traders open lot of positions with big volume and earn huge profit within a short time and then they start to dreaming, they will be millionaire very soon from forex market. But you cannot apply same lot, positions in the real market due to margin call, leverage up down and due to much more reasons. So, if you follow the same in real account, no way to safe your money.
I don’t prefer demo account for a long time, if you have basic knowledge about forex, my suggestion, don’t waste your time and energy with demo account. Read More.
