I noticed a lot of new traders remain skeptical about the benefits of Demo accounts. Plenty of them just neglected an opportunity of getting experience through practice with virtual money. Such persons usually start trading Cent or Mini accounts excited and full of optimism about their new adventure. They aren’t afraid of losses at first, but eventually, give up without getting to the bottom of this thing.
So, I decided to deal with all concerns about Demo trading. Let’s take a look at the common misunderstandings about Demo accounts:
Is it just a waste of time to play with virtual money if you demo trade?
Forex trading is all about the long-term. If you miss the practical part called Demo trading, you’re likely to lose money and make a decision that trading is not for you as well. But, in fact, lack of practice has an impact on decision-making. Stress and doubts can also disturb until you get used to them. It’s better to practice more in order not to return back to Demo account after the negative experience. It’s what I did wrong, and now it’s you who can save your time and efforts.
Does it help to save money in future?
Yes, and that’s why I recommend everyone to gain experience in forex trading. You have to understand how to benefit from market trends and news first. Also, a lot of traders make simple mistakes during orders setting (buy stop, buy limit, sell stop, sell limit etc). Personally, there is no reason to trade real money if you have less than 4-6 months of demo trading experience. So, why don’t we just reduce the money we lose from our mistakes…
Why do I have to manage stress practicing Demo trading? It doesn’t work that way with real money
Of course, we have to take into account a factor of psychology. If you begin immediately with live trading, you’re likely to step away after heavy losses. It’s not your thing you say and just quit. Trading on Demo accounts allows people to understand their own psychology, become familiar with different market situations and fit this process into their schedule..
In conclusion, if you’re serious about earning on forex on a long-term basis, you should be much better off as a trader. Take your time.