Articles

Forex Demo Trading Practice — A Patulous Guide

by SK Rimon Hossain Trading Journalist of TopAsiaFX

It’s not a secret that if you want to become an expert in something that you have to do is practice and practice only because there is no shortcut to success.

Haven’t you heard that practice makes a man perfect?

According to this rule, if you want to be an expert on anything, you should be ready to practice for at least 10,000 hours. This is true in every aspect of life, and Forex trading is no exception.

Forex trading is easy, especially for professional traders. In the eyes of an expert trader, it looks quite simple and easy to understand.

But in the eyes of a beginner, Forex trading may seem complicated and risky. So, how do you learn to trade Forex without risking your hard-earned money?

The secret lies in the Forex demo trading. In this guide, you will learn everything about the demo account, how to make them, their advantages and disadvantages, and from where you can make one.

Therefore, without any further ado, let's dive right in.

Here are the deets…

What is a Forex Demo Trading Account?

A Forex trading demo account is a virtual account that allows you to trade with virtual money. A demo account simulates a live account.

Therefore, the only diversity is that you are trading with virtual money instead of your real money and that’s why you won’t be losing any money if you make a wrong decision.

Demo trading accounts are completely risk-free, and you will lose nothing. Both novice and professional traders can use a demo trading account.

Also, Learn the differences between demo and live trading. 

For example, if a professional trader wants to test a particular strategy, they will use a demo trading account to do so. Because there is no risk of capital loss, traders can learn and gain experience while using a demo account.

What Features Demo Account?

As explained earlier, the demo account provides a secure platform for traders to learn and gain experience in stock market trading.

Demo trading accounts have different features depending on the platform provider. Some standard features include a demo account:

1. Charts

Many have graphics demo trading accounts, especially when trading currency pairs. Without this graph, it would be almost impossible to determine the most favorable trends in the market.

A demo trading account will help you explore and interpret graphs and also apply a variety of charting tools.

2. Trade Analysis Tool

Every Forex trader needs indicators for technical analysis and other important tools for Forex trading.

These tools help you to determine the best place to enter and exit trades. With a demo trading account, you can try as much as possible until you find the best point to enter the trade.

3. Market Research

The foreign exchange market indicators are only useful if you have the ability to read the market trends or otherwise it isn’t any use to you.

For example, you need to know the basics of candlestick analysis to trade effectively. A demo account trading is an excellent platform to master the nuances of this.

That’s why you should DEFINITELY study the market indicators.

4. Testing Market Trends

Many demo trading accounts provide tools to test market trends. Forex markets are always shifting. For example, you may have a specific currency pair that showed good gains in Asia while others do better in the London trading session.

Trading with a demo account will allow you to observe the trends and determine the best time to trade in the Forex market specifically.

What are the Advantages of Trading Demo Account?

When many people start trading in the Forex market, usually they know a little or nothing about Forex. If you decide to learn by trading with a live account, you may charge a deposit.

So the best thing is to sign up for a risk-free demo account. Because with the help of a Forex demo account you won’t be afraid to trade thinking you might lose your money.

As a result, you will make mistakes but at the same time you will learn from them and which will lead you to a better direction in Forex online trading.

Another advantage of using a demo account trading is that you get a chance to test the quality of the services offered by your broker. With a demo account, you can check the effectiveness of their platform and tools they provide.

Lastly, trading in a demo account gives you first-hand experience. You can learn a lot about Forex by reading books, attending seminars, and watching videos, but nothing can beat the experience of learning on the demo platform.

Cheers!


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About SK Rimon Hossain Innovator   Trading Journalist of TopAsiaFX

21 connections, 0 recommendations, 63 honor points.
Joined APSense since, December 1st, 2018, From Khulna, Bangladesh.

Created on Nov 8th 2020 10:22. Viewed 191 times.

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