There
are numerous forex trading platforms that allow you trading through
them and in order to start trading you have to create an account. Now
there are different types of accounts that can be categorized as live
and demo accounts. Demo accounts are basically for beginners to learn
about trading without risking any money.
Now
obviously it is good to practice one’s trading strategy with a demo
account but the problem is that people stay on their demo accounts too
long. A time comes when the trader has mastered the screen time and has
all the relevant knowledge but when he/she starts trading with a real
account, they start to lose their money.
It
is good to know all the ins and outs of trading, understanding the
market and charts and other relevant knowledge about trading before
entering the real trading world. But if you don’t jump in and get your
feet wet, you’re never going to develop the skills to succeed in the
market. They are good to educate you but they are only simulations, not
the real thing. Also, you are never going to get those ‘perfect’
scenarios in the real world, for example, order fills, stop out levels,
prices and etc. are different in demo accounts. The reason why traders
do much better on demo accounts is because there is no risk involved and
no emotions clouding their judgment either.
Yes,
demo trading can educate you about what trading is, but to actually
start trading, live trading will be your best teacher. The goal is to
master a trading strategy, once you’ve achieved that on a demo account,
you can enter the real world.
- See more at: https://goo.gl/o8xNWK
No comments:
Post a Comment