The Importance of Demo Accounts in Forex Trading
Demo accounts in Forex trading are important for trial and error before transactions on the live account begin. Many people think that this demo account is like a toy because it only uses virtual money. Demo accounts are provided by Meta traders rather forex traders can test various trading systems. So it’s not solely to show that you are good at forex trading or not.
This demo account on forex will test the trading system that you have compiled. Includes the indicators that you use in Metatrader, and practice how to read them correctly. Try testing the quality of your forex trading system during market trends, sideways, or when high impact news. By utilizing this demo account, you can also test the market character of each currency pair. You can learn habits that occur in the market during certain hours. Because there are indeed several currency pairs, there are hours that they have a high level of volatility.
Better loss in Demo Account first than in Live account.
What forex strategy will you use when you are in a loss or profit position? Through this demo account you can learn it. Especially later on when you live, you no longer use virtual money, but real money. The demo account will also measure how many profit points are taken, how many must be withdrawn, how many must be injected, how much the funds will be saved, and so on. You can’t determine the exact timing when trading forex? Well, a demo account will also help you to learn it. Including testing risk management, and most importantly, testing your discipline.
No matter how late you read the market movements and even 90% maybe you will continue to profit, discipline is still needed. Choose discipline with small results and risks, but keep on going every month. Instead of big results, big risks, but in the second or third month the money disappears instantly. So, treat demo accounts like ‘real trading’.
Why not try a demo account now?