Learn to trade on a demo account
Learn to trade on a demo account
As we know, nowadays trading business is increasingly popular. Now for those of you who are new to the world of trading, it is certainly very important to try to learn trading on a demo account. A demo account is an online account that is provided free of charge by brokers or forex brokers. At present almost all online forex brokers provide facilities in the form of demo accounts for beginners who will be engaged in trading. This demo account is intended to provide training before you actually enter the forex market. Even though it’s only a demo account, you can trade forex with the actual data that is on the forex market.
By using a demo account as a learning tool for free, you can try to do foreign exchange transactions without the risk of losing money or capital. With this demo account you can also measure competitiveness in the forex market without the risk of losing capital. But even though this demo account is very useful, of course it also has various advantages and disadvantages that we will discuss below:
UNDERSTAND AND MASTER PLATFORM FEATURES
You who are still newcomers, of course, have to learn about the trading platform.Especially for those of you who don’t want to lose money just because they tried all the tools on the demo platform. Now with this demo account you can learn all the available platform features. That way when you trade using your real account you can reduce your risk of loss. Especially if you can master all the features in a trading account, this will be very useful for you in the future
UNDERSTAND THE DYNAMICS OF MARKET MOVEMENTS
The second advantage is that you can understand the dynamics of market movements. This is because with a demo account you have the greatest chance to test your trading rules. examine market dynamics and habits. You can find out where you should make transactions. Where should you take a position as an audience. You can test your data entry placement, and of course your exid loss and exit profit without any fees. At least you can avoid big losses and errors that drain your wallet. record all the important things about the dynamics of this price movement. Look for the reason why this market is moving
THERE IS NO RISK
There is no risk because when you learn to use a demo account all transactions used are only virtual money (toy money). So when you profit or lose in this demo account transaction, only as a medium to hone your strategy. There is no risk that you have to bear. So you can make it a place to hone a variety of trading systems and strategies to get profit before actually using your money capital
The account demo is provided at various trusted brokers for free without spending a penny and you can still use it for transactions. Register immediately with the best forex brokers that provide demo accounts for you to use as a place to practice the systems and strategies that you have learned before using your money to trade in the real market.
THE RISK OF LOSS IS NOT REAL
The absence of a real risk causes some traders to trade carelessly without fear of losing money. Traders behave differently and use trading options arbitrarily without studying analysis and strategy compared to using real money capital.Actions like this need to be eliminated because if you trade using a real account of course habits like this will be very fatal as the risk of losing your money in large amounts.
LESS REALIZING RISK FACTORS
This is arguably the biggest weakness of trading on a demo account. Because trading too often using a demo account you are not aware of the risk factors that you will face if you trade with a real account later. The reason is because when you trade using a demo account you don’t get the experience of trading prikologi.You could say this includes something that must be mastered by traders. As we know if a demo account doesn’t use real money or your money, that’s why you won’t get this experience. By trading too often using a demo account, you will never understand the value and amount of losses. This is because the money involved is not real. So when you jump into the real world of trading, you are worried that you will behave like when you trade using a demo account. Not too concerned about the trading system and tends to be relaxed and arbitrary when transacting. Now this attitude is what actually damages the core of trading learning. Instead of getting profit and learning instead you will lose your money when transactions with your real account.