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Trade
Risk demo trading
Every golfer, from our own experience knows about the loss of precision strikes during the responsible of the competition when he plays a wonderful "shots" on the training ground before the game, but the game itself later goes from bad to worse. Between the real game (with screaming fans and a large prize Fund) and training in greenhouse conditions is a "gap". And technically simple shot becomes much more challenging when the player is already on the 18th hole, although on the training ground and he has done this thousands of times.
In the real game completely "change the stakes". The difference in trading on demo account and on real (replenished Your "hard-earned" dollars) like the differences between "walking" exercise to the native Golf club and the Sunday game for the main prize of the season in an away tour, which takes place in the capital's suburbs and in crowded stands..
Demo trade is not without significant advantages. Just as You don't expect to achieve success on the Golf course without first exploring the game and a long training, You can't expect to become a successful trader without knowing the terminology nor the mechanisms of the market. Demo account is the ideal environment to get a similar experience.
Demo account is trying to recreate a market reality and is a great "simulation" of the market environment. Usually You start with imaginary capital – say, 50 000 of virtual dollars and can conduct "live" transactions for the sale and purchase of foreign currency. Here you can test the strategy and keep track of all your victories and defeats, collecting real data for further analysis. Many brokers give the opportunity to try your hand at a demo account online, when you can work in the markets in real-time.For the currency market this means 24 hours a day and five days a week.
But it is inevitable and the inherent risks of demo trading. No need of permanent self-control and serious consequences from their actions bring to the trading process error and even denial of the value of such an imaginary experience. It is extremely difficult to maintain the same level of responsibility on the mental account, like in the game are Your real money. Emotional tension inherent in real online trading, it is simply impossible to experience in the demo trade.
Until You face real financial losses, You'll never know yourself as a trader. To trade on a demo account you can gain invaluable "technical" knowledge, but until You enter the trade with a real risk of loss, you will learn about your true trading abilities. Knowing how You are able to manage their emotions, often even more important than purely "technical" experience of trading in real markets.
The results of testing will be introduced distortions, due to differences between demo trading and real account, such as dependence on liquidity in real time and trade pairs which can be available on the "live" accounts. "Ultimate" settings here will differ from "real" accounts and the update rate demo accounts will not always correspond to update data in the "real world".
Demo trading can be a great help to explore the intricacies when entering trades and exiting them, but You will never become a trader until You apply these tools on a real account.
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| Category: Forex | Added by: (30.10.2017)
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| Views: 253
| Rating: 0.0/0 |
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