Many of my clients and staff ask me what are the views about the use of Forex demo accounts. Bottom line, I’m very pro demo account. Get to the point where I have a demo account running all the time on the system states, and also my own Forex trading computer at home, even though I live trade. It runs while I’m away during sleep and even while I was watching my favorite ball team play on Sunday afternoon. My Demo account is part of my Forex trading strategy training, self-education and professional life.
I’m very familiar with the negatives associated with demo account trading, and I experienced them early on when learning to adjust from stock/options trading in trade transactions.
1. Demo account give a false sense of security in trade transactions.
2. The emotions “Live Money” trading is not brought into the game with the demo account.
3. Exchange demo-to quote the account feed is not the same as live account feeds.
There is some truth to this. The Demo account does not give the beginner a false sense of security in their abilities, because of the emotional involvement to pretend with one, trade the emotional roller-coaster ride is far from related to live trading with your own hard earned money. And I know that the indication of this fact, all the aspiring Forex Trader, you live.
As far as the price of consuming a demo account, this is not true with the demo accounts that we use. Same eyes quote stream that feeds my demo also feeds my live accounts. They are both from the exact same ip address. I’ve heard about this problem on other demo accounts, but no first hand experience with them.
What is different is the reaction of the market to my demo trades (which is not a market-response) in contrast to trade my life. In live trading, the next tic after I execute a trade in the opposite direction 99.9% of the time (I’ll explain why in a future article). One important difference is that the demo is where the brokers test any platform updates or changes prior to their live platform. This can be a platform to instability in the demo are not seen in the current life.
The advantages of using a Forex demo account, however, far exceeds all the flaws. The two most important reasons to learn how the trading platform itself, and learn about the Forex market. There’s nothing worse than the feeling to jump on a trading platform find out how you can execute the trade, trading, recognize you have it in the wrong direction, and then spend the next fifteen minutes reading the online instructions to learn how to trade while the market is rise up against them. Please, practice, do everything in the demo platform, you want to use before you live.
Second, and this can not be stressed enough, no other market in the world is so interesting (unpredictable) as a market Exchange. You can read, train and study all you want. Until you develop a feel for the Forex market and you have what we call know “read the right side of the charts,” your trades will have a higher might and the age. And I’ll let you in on a little Conversion secret.
There are no secrets in the playoffs. It is not a secret trading strategy that works for you all the time. Each strategy is planned, ever, developed, and marketed, has also been bought, analyzed and countered, including by other traders and brokers (us). You need to develop a feel for the market, and there is no cheaper way of gaining market experience than with a free Forex demo account.
More advantages come from the use of Forex demo accounts. For example; 5 M Forex trading accounts with three different platforms, one for micro account ($25 initial minimum and 100 to 1 leverage), one for mini account ($200 first and 200 to 1 leverage) for standard accounts ($250, and 400 1 leverage). We only offer a demo account, however, and it is with our standard account platform. Why? It is the best, most sophisticated platform with the best charting package.
Also, if you sign up for our micro-account and trade live on this platform, we recommend to use a demo account to all their practice, analyze, set-up and fig. To make mistakes, and taking losses on the 400 to 1 leveraged demo platform, even with pretend money, will teach you to practice fast, strong risk management strategies on every trade. It make the transition smaller than the platform account, the default account seems easy.
We leave the demo account charts running for audible alarm, when we meet stop, profit target, the technical price levels, and in the case of certain technical indicators. We also think that the Automatic Trading systems that we use to run on the demo. We have rarely let the computer, automatic trade execution can be left with the money (even though). We don’t let them carry out trade automatically the alarm on the demo account with pretend money and listen to us. And then we check and see what we need to bring you to the right life of a trade. Audio signal to be excessive, sitting in front of a computer 24/7 during a live trade open, or when you are waiting for the market to do something that will require my attention. A warning has also developed me from the sound sleep (it is a 24 hour a day market).
Another great reason to Exchange demo accounts to test. We test all here in the 5 M Exchange. Our test platforms, techniques, signals, strategy, counter-strategy, trading system, and counter-trading system. We also have to test everything again. In fact, we have a lot of, long and short test time-frames, on every possible indicator, strategy and eye the pair. Although we are experienced trader, continue to test, and again 150+ test hints you will find in the demo platform. With the market the Forex market does not change so fast and always like, this is a necessity to stay profitable. The only thing easy about Forex trading, the trade execution. This only requires one click in the mouse. There’s a bit of work and then click.
And the last reason why I always run a demo account. I never chart out my trading strategy on the same platform as the one, where I will lead trade. And there’s a very good reason for it. I don’t want my broker live trading platform, to see what I planned.
Ok. I know. It is stupid and superstitious. I know that there is absolutely no possibility of my broker can see what I’m doing in the charts on the platform. I also see that it is more technical, the violation of ethical and legal issues that would prevent these honest business professionals from ever such a thing. I don’t but place future orders on the live platform. I’ll explain why in another article.
I’m sure of one thing, though. Wear this tin-does not prevent a hat on my head to see that my trading thoughts from transmissions via the internet lines for all.
As usual, Good trading to you.