Forex demo account wwneed.com
Having a forex trading demo account is a golden opportunity for new and novice forex traders to learn the basics of the market and see how its movements can be used to their advantage. But before getting a demo account, it is necessary for you to know what these accounts are, how they work, and what benefit they can offer you as a beginner.
In this article, we will help you learn all about these demo accounts including what you will benefit from the free benefits, how to get a demo account, and how it works and uses it.
Why should new traders use a demo forex trading account and how do they do it?
Did you know that global trading volumes in the foreign exchange market reached a record high in 2018? Thanks to the fluctuations in the global economy, the number of people actively trading in the forex market is constantly increasing. However, trading in a market of more than $5 trillion each day can be very daunting and challenging at first. This is why your first forex trading account should be a demo forex trading account.
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In just a matter of minutes, your forex demo trading account will become your free practice account simulating live or real trading. A demo trading account is an invaluable opportunity for you as you learn the basics of forex trading. You can easily open a forex demo trading account for free and in just a matter of minutes, and then start trading in the global currency market without any risks.
What is a forex demo account?
The forex demo account enables beginners and new traders to experience trading for the first time in a live and fake trading environment with fake money without risking their real money in a way that helps them understand the working mechanisms of trading platforms and build a deeper knowledge of trading and its basics as well so that they are ready to start real trading with their real money without the risk of losing it.
All forex traders should use a demo forex account as their first step into the world of forex in order to get to know how trading is done in the currency market as well as to get used to the broker and trading platform that they use. A forex demo account basically enables traders to practice their trading skills along with quite a few attractive benefits that come with this account.
Trading with a demo account:
By using a forex demo account, traders also get the opportunity to practice trading without risk. This means that with demo accounts, new traders do not put their capital at risk and get the freedom to choose the transition time to trade in the live markets.
Most demo accounts give traders access to the latest real-time market data as well as the latest trading insights from expert traders and give them the ability to trade using only virtual currency.
What are the advantages of a demo forex trading account?
A forex demo trading account has an endless list of features and benefits that novice forex traders should exploit and take advantage of. Here is a list of some of them:
It enables you to learn the basics of forex trading without exposing yourself and your money to any risks:
Having a forex trading demo account is like getting free forex training. This is because it enables novice traders to put trading theories into practice and implementation without having to risk real capital by allowing them to trade with only fake money instead. Since the pioneers of any field or discipline are the people who have been able to practice their craft to a great extent, the demo account is an excellent opportunity for new forex traders.
It helps you to get familiar with the working mechanisms of your trading platform and get used to it:
By opening a demo forex account, you can learn about the trading platform and its working mechanisms by making trading deals using the imaginary money that your brokerage platform offers you. This way you can learn how to trade, how to close trades, and how to use different trading tools to your advantage such as different order types and trading indicators.
When transitioning to live trading with real money, it is essential that you feel comfortable opening, adjusting and closing trades when you need to. The last thing you’ll want is to panic about not knowing how you can exit trades. You will also want to know how to use stop loss and take profit orders so that the broker and trading platform can manage your trades when you are not there. A forex demo trading account can be the key to your long-term success.
You can learn to manage your emotions:
When it comes to risking money in order to win money, a lot of feelings and emotions can be triggered. You can feel the euphoria and overconfidence after a few winning trades and you can feel frustrated and suspicious after a few losing trades. These feelings often influence a trader’s judgment of their next trading opportunities.
Trading with a demo trading account helps you identify these feelings so you can build a routine and plan to deal with them. Most novice traders do not know what kind of feelings they will have when winning or losing, so it is probably best to figure this out while you are in a safe position without risking any real money.
Create, develop and test your own trading strategies:
Using a forex demo account you can practice the trading tools and strategies that you have learned theoretically. It also enables you to test and develop it by making the necessary and necessary adjustments with every fake losing or winning trade that you make, which helps to build a trading strategy that suits you and serves your aspirations.
A forex demo trading account is the perfect place for you to test anything new you have learned about strategies. You can also learn about your trading patterns through it after some time. You may also begin to develop your own trading system. The ability to demo trade without the risk of losing money often allows traders to be more creative in terms of testing strategies and instructions and knowing and choosing what works best for them.
It helps you find the best trading routine that works for you:
Forex market traders trade 24 hours a day, 5 days a week. So when is the best time to trade? Most traders prefer to trade in the hours between the opening times of the Tokyo, London and New York trading sessions which are 12am, 8am and 2.30pm GMT respectively. However, the best time to trade for you is when you have the ability to fully focus on the markets.
One of the great things about the forex market is that you can develop a trading routine that works with your work and family life. However, when you are first starting out, it can be difficult to find the exact trading routine that works for you. The last thing you want is for your trading routine to negatively affect you in a way that will lead to you making bad trading decisions, which means losing real money. Using a forex trading demo account can help you find the best routine for you before you start risking real capital.
The best way to use a forex demo account:
A forex demo account offers many advantages and benefits for new and novice traders as we mentioned, but it has a number of drawbacks that you should be aware of so that you can use the account in a good way that serves your interest and prepares you for real trading. Only after understanding these drawbacks, will you be able to use the demo account in the best possible way.
Create a trading plan for a real money account and trade it on a demo account:
Your first step should be to create a trading plan to use in a real money account. While you will get a demo account to find what works best for you and your trading plan, as any trader you will need a solid foundation to build upon.
Your plan might consist of the following:
*Trading time: Try to stick to the same time every day, as you will learn more about how that particular session moves each time, which will make it much easier for you.
*Trading Markets: Focusing on a few markets first may be the best way to implement what you have learned on forex. Some of the most popular forex pairs include EURUSD and USDJPY.
* Trading Strategies: You must determine the tools that you will use in making trading decisions and then develop a strategy based on them. This way you will know what conditions to take into account when placing a trade and closing a trade.
Risk Management Tools: Risk management is an essential component of successful long-term trading. You must decide in advance how you will place each trade in terms of volume and how you will decide to close the trade in profit or loss.
The most important thing here is to try and replicate how you want to trade on the real account. You can then practice and test your trading plan over and over with the necessary adjustments until you feel complete and comfortable enough to move on to real money trading.
Create a trading journal to track the results of your trading practice using:
It’s great if you can get a demo forex trading account, but at what point should you move to trade with real money and get a real trading account? Only you can answer the question, but you may want to track the results of your demo trading and set some goals that you will commit yourself to achieving before making the decision to move to the real account.
It can be very useful for you to create a journal to keep track of the history of your trading activity, as you can see what your results would have been if you were trading with real money. Due to the volatility of the actual market, it will likely not be exactly the same, but these demo results will enable you to get a clear idea of whether your trading plan is working well or not.
Of course, this method will not work and will only work if you are honest about your trading results. If so, this method may work. Some of the most successful traders in the world have mindset coaches, so it can also be helpful for you to keep a journal of your emotional progress in terms of how you feel after a winning or losing trade. It’s a great way to prove to yourself that you have the mental fortitude you need to start risking your money in live trading conditions.
Set a goal to achieve before moving on to using a live trading account:
The day will come when you will want to move to using a real trading account and try to reap the rewards of your hard work in live market conditions. However the exact date and time of that day is up to you. So, the main question you need to ask yourself is what do I need to happen or achieve first before making this transition?
Some traders like to set some goals that they must reach before making the decision to move to trading with real money. For example, your goal indicative of transition time could be to reach 10% of your demo account balance, or simply make 20 trades, or achieve three months of profitable trading first. One of the advantages of demo accounts is that they can provide you with a smooth transition to a live account using the same platform. The charts you use and your trading plan can stay the same – and maybe that’s the way it should be!.
How can I get a demo trading account?
If you desperately want to start trading in a risk-free environment right away, it only takes a few button clicks and minutes to open a demo trading account. After entering your name and email, you can start enjoying the benefits of a demo account. Which includes, for example:
*Ability to trade using any device (eg Windows, Mac, Android, iOS)
*Full live market experience.
*Access to free market data and real-time news.
*Quick expert guide.
*30 days of use and trial or lifetime use when opening a live trading account.