Skip to main content

DEMO TRADING(10)

 


You can open a demo account for FREE with most forex brokers. These “pretend” accounts have most of the capabilities of a “real” account.

But why is it free?

It’s because the broker wants you to learn the ins and outs of their trading platform, and have a good time trading without risk, so you’ll fall in love with them and deposit real money.

The demo account allows you to learn about the mechanics of forex trading and test your trading skills and processes with ZERO risk.

Yes, that’s right, ZERO!

YOU SHOULD DEMO TRADE UNTIL YOU DEVELOP A SOLID, PROFITABLE SYSTEM BEFORE YOU EVEN THINK ABOUT PUTTING REAL MONEY ON THE LINE.

WE REPEAT…

YOU SHOULD DEMO TRADE UNTIL YOU DEVELOP A SOLID, PROFITABLE SYSTEM BEFORE YOU EVEN THINK ABOUT PUTTING REAL MONEY ON THE LINE.

Demo Trade

“Don’t Lose Your Money” Declaration

Now, place your hand on your heart and say…

“I will demo trade until I develop a solid, profitable system before I trade with real money.”

Now touch your head with your index finger and say…

“I am a smart and patient forex trader!”

Do NOT open a live trading account until you are CONSISTENTLY trading PROFITABLY on a demo account.


If you can’t wait until you’re profitable on a demo account, then there’s very little chance you’ll be profitable live when real money and emotions are factored in.

You’re probably thinking, “Sooooo…what I hear you saying is…there’s still a chance then?”

Facepalm

If you’re that impatient, then at least try to demo trade for at least a MONTH.

You can hold off losing all your money for a month riiight?

If you can’t, just donate that money to your favorite charity or give it to your mama…show her you still care.

Even after reading this, you’re probably still NOT going to demo trade for at least a month since you’re stubborn like that.

But at least we tried.  😑

Concentrate on ONE major currency pair.

 

Concentrate on DollarIt gets far too complicated to keep tabs on more than one currency pair when you first start demo trading.


Stick with ONE of the majors because they are the most liquid which usually means tighter spreads and less chance of slippage.

Plus, in the beginning, you need time to focus on improving your trading processes and creating good habits.

You’ll also need to experience different market environments and learn how to adjust your methods and strategies as market behavior changes.

You can be a winner at currency trading, but as with all other aspects of life, it will take hard work, dedication, a little luck, and a whole lot of patience and good judgment.

Did this content help you?
Labels:

Popular posts from this blog

WHAT IS MARGIN TRADING(22)

  The biggest appeal that forex trading offers is the ability to trade on  margin . But for many forex traders, “margin” is a foreign concept and one that is often misunderstood. Like Bob. Bob sure knows his fried chicken and mashed potatoes but absolutely has no clue about margin and leverage. Margin trading gives you the ability to enter into positions larger than your account balance. With a little bit of cash, you can open a much bigger trade in the  forex market . And then with just a small change in price moving in your favor, you have the possibility of ending up with massively huge profits. But for most new traders, because they usually don’t know what they’re doing, that’s not what usually happens. More likely, price does move, but it moves  against  them. Like what happened to Bob. Bob was in a trade. He was sure that this trade was going to be a winner so he bet  BIG . All of a sudden, to Bob’s surprise (and shock), he witnessed his trade being a...
Read more

Trading Scenario: What Happens If You Trade With Just $100?(32)

  What happens if you open a trading account with just  $100 ? Or  €100 ? Or  £100 ? Since margin trading allows you to open trades with just a small amount of money, it’s certainly possible to start trading forex with a $100 deposit. But should you? Let’s see what can happen if you do. In this trading scenario, your retail forex broker has a  Margin Call Level of 100%  and a  Stop Out Level of 20% . Now that we know what the Margin Call and Stop Out Levels are, let’s find out if trading with $100 is doable. If you have not read our lessons on Margin Call and Stop Out Levels, hit pause on this lesson and start  here  first! Step 1: Deposit Funds into Trading Account Since you’re a big baller shot caller, you deposit  $100  into your trading account. You now have an account balance of  $100. This is how it’d look in your trading account: Long / Short FX Pair Position Size Entry Price Current Price Margin Level Equity Used M...
Read more

HOW TO AVOID A MARGIN CALL(33)

  Trading on margin   is a way for traders with limited capital to make significant profits (or losses). If you fail to understand the concept of margin or not knowing what to do when faced with a margin call from your broker, you will definitely experience the shock of your trading account blow up. Here are five ways to avoid a margin call. 1. Know WTF a margin call is. Understanding what margin call is and how it works is the first step in knowing how to avoid one. Most new traders want to focus on other details of trading such as technical indicators or chart patterns, but little thought is given to the other important elements such as  margin requirements ,  equity ,  used margin ,  free margin , and margin  levels . If you’re hit with a margin call out of the blue, this usually means you have no clue what causes a margin call and are opening trades without considering margin requirements. If this is you, you are doomed to fail as a trader. Guarant...
Read more