Many forex traders underestimate successful trading on demo accounts. Unrealized profits make them think that success is a waste. Actually, trading performance in a demo account can be a barometer of beginner's progress. Logically, if trading on demo accounts that use virtual money just can not work, where can trading in live account work?
One more reason merchants underestimate successful trading on demo accounts is the ease. There are many examples of merchant cases that easily gain a lot of profit in a demo account, but have trouble losing money after switching to a live account. Because of such a comparison, many traders believe that successful trading on demo accounts is very easy to get and does not need to be learned. Actually, that's the thinking that makes it difficult for them to repeat the success in real trading accounts.
In fact, many of them were surprised after failing to repeat similar successes in live accounts. They are not aware if successful in a live account, fortune capital alone is not enough. There should be business added with discipline and consistency.
1. Consistent with the Ideal Trading Strategy
Demo accounts are places where practice trading and testing strategies. But when you have found the ideal strategy, then it should be in accordance with the method. In trading in live accounts, consistently using proven strategies is one of the absolute requirements to achieve success. If the demo account is not familiarized like that, then you will be very loyal with one strategy in live account.
Another important note in this tip is, the ideal strategy is not the best trading strategy. Ideal in accordance with your preferences and understanding, not a strategy that is said to generate big profits by other traders. There is no point in applying the best trading strategy if you fail to understand the rules, or not according to the method.
2. Adjust the Capital Size
The first time you open a demo account, you will get a choice of virtual capital in various fantastic amounts, ranging from $ 10,000 even up to $ 50,000. If you want to succeed in demo account with the right effort, you should not be tempted numbers.
The key, take the balance range the same or at least close to the size of your trading capital. Suppose you plan to sign in to a live account with $ 1,000 of capital, then do not open a demo account with a $ 50,000 balance. Why? With so much, you will not treat a virtual balance like your own money.
In addition, you may have trouble adjusting to changes in trading results in live accounts. For example, you're used to making huge profits between $ 1,000 to $ 5,000, because they have a $ 50,000 demo account balance. When you start trading with a capital of $ 1,000, you will not be satisfied with profits in the range of $ 20 to $ 100. Such thinking is obviously dangerous, as it may encourage you to take high-risk actions (such as Overtrading), just to meet the huge benefits standards Usually get in demo account. Actually, all the risks in the live account are no longer virtual.
3. Minimize Indicators
Do you know One successful successful but often overlooked merchant recipe is clearing the charts from the display of too many indicators. Besides being able to complicate the analysis, overcrowding charts can weigh on the performance of the platform. Merchants who often mutually indicate or disassemble tools and trading software often experience problems on the platform.
So when you have found an ideal strategy that applies a particular indicator, avoid the temptation to modify it with other indicators. This will develop positive habits so you can always be consistent with your existing strategy. In addition, the live account platform is usually more sensitive than the demo account platform. So to reduce the risk of inhibiting platform performance, make it a habit to not rely too much on the demo account.
4. Monitor your Trade Performance
How do you know the progress of trading if it does not monitor performance? Although still in demo accounts, trading statistics still need to be monitored from time to time. Just looking at the number of benefits accumulated alone can not be an indicator of success, because there are other elements, such as the level of profitability and withdrawals that need to be taken into account.
5. Do not rush
Achieving success in trading is a time-consuming process. You can not specify successful trading on a demo account only from the success of one or two trades. According to the trade character named Jasper Lawler, it takes at least 30 trades for the test results of a trading strategy that can be said to be valid.
This benchmark is of course only a recommendation. You can specify your own based on the number of transactions or time. Some merchants there who consider the ideal time to trade in a demo account for at least 6 months. Whatever reference you use later, make sure the parameters are sufficient to show your readiness to switch to a live account.
In essence, Treat a Demo Account Like a Live Account
From all the above points, it can be concluded that the core of successful trading in demo accounts lies in the way you treat accounts. Whether choosing capital size to trade journal entries, these five tips are designed to allow you to treat demo accounts like live accounts.