Things You Need To Know On Forex Trading Demo Accounts.
Forex market is undoubtedly the most attractive market in the world, with high profit potential. However, if you are just starting to engage in forex trading activities or are just planning to do it, then absolutely you must learn how to trade using a Forex Demo account. Most Forex brokers offer free demo accounts using the MetaTrader 4 platform.
After you open a Demo account, you must prepare enough time to study and prepare for live trading. If you are not sure when to start, here we will give you the most important things you need to know.
1. Learn about forex trading platform features: Indicators and charts
Learn as much as possible about the trading platform that you will use. In the MetaTrader 4 platform, the main features you need to understand and use are: indicators, how to modify graphics, how to read terminal windows that have information about your trading activities, account history, alerts, and many other useful features. Allow enough time to understand the trading platform and its features, so you can use it to make a profit.
2. Test all orders for transactions
Use your time to test all trading rules. Do not hesitate to test, for example: Buy Limit, Sell Limit, Buy Stop, Sell Stop, Take Profit and Stop Loss. The last two commands are very useful and you will most likely use them in all trades when you start trading with a Live Account, which is when you set Take Profit and Stop Loss orders.
3. Exploration of all currency pairs.
When trading on a Demo account, you are very easy to lose focus by opening too many positions. The wise thing to do is to keep concentrating on one or two currency pairs, for example EUR / USD, and try to master it. If you feel that certain instruments are not suitable for your trading style, move to another currency pair. You can also try several other assets, such as CFDs, gold and oil, and see how well you can trade. The important thing is to focus on a number of assets and follow the main market news that affects price movements.
4. Select the correct lot number
Because of the leverage, the bigger the lot you use, the higher your profit and the potential loss. Beginner traders are generally recommended to use a smaller lot size because the risk will also be smaller. The right lot size is an important part of risk management and it should not be ignored.
5. Take control of your emotions
Using a Demo Account is very important because you can trade with virtual money. After you start trading with a Live Account, with your own money, you will see that emotions will sometimes interfere with your trading. Feelings like anger, guilt, fear or greed can be prevented by you by implementing a sound investment strategy.
Perseverance, patience and common sense are qualities that will make you a successful Forex trader.