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Thread: Why you should demo trade the market for at least three months

  1. #1
    Join Date
    Mar 2016
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    Forex Ability & Talent

    Why you should demo trade the market for at least three months

    In the world of economic crisis managing your financial need is extremely difficult. People all over the world struggle very hard to earn their financial freedom. But despite working so hard very few people can have their financial freedom in life. To be honest, in the past we have very little opportunity to make money to improve our lifestyle. But due to the recent advancement in technology, retail traders like us can easily participate in the forex trading industry and trade the live assets. Since most of the reputed brokers like Saxo offer high leverage trading account, people can actually make a huge amount of money by utilizing the leverage. Just look at the professional Aussie traders and you will see that many of them have changed their whole lifestyle just by forex trading. But before you get fully involved in the trading world you need to learn the market details by using a demo trading account.

    Gives you a clear insight of this market
    The market is so profitable that very few traders can actually understand the risk in trading. In order, t become a professional trader you need to truly understand how the market works. For this very reason, you need to demo trade the market for at least three months. It's true that you can also trade with real money but you can be 100 percent sure that you will blow your entire trading account within a very short period of time. According to statistics, only 5 percent of the traders are making consistent profit in this market. So there must be something special among the successful traders in today’s world. Every single one them has demo traded the market for a very long period of time. They have worked hard to find the perfect trading strategy for them to make money. Once they felt comfortable with their demo trading performance they have switched to real life trading.

    Allows you develop a perfect money management plan
    Proper money management is often considered to be an essential element in forex trading. If you want to succeed then you need to learn how to take managed risk in trading CFD. The novice traders often execute high lot size in the real market and make one big winner. But in the long, they simply just wipe their entire trading account with some few losing trades. But if you trade the with demo trading account then you can easily realize how dangerous it can be when you trade with high lot size. Placing your trade by using the all the trading parameters will not ensure your profit. No matter what you do, you will often have some losing trades. So if you simply follow 1:2 risk reward ratio trades then you can easily afford to lose more trades and make money in the long term.

    Helps you to identify your mistakes
    Trading is just like doing any other business in the world. The professional traders always trade the market with the extreme level of precautions. If you want to make money in this industry then you need to play some tricks in this game. Always make sure that you are learning from your mistakes and if you do the same mistakes again and again then the industry is not for you. Develop a strong reading habit as it will enhance your trading knowledge. Being an active participant you must know when to place a trade and when to stay on the sideline. Professional traders always have complete control over their emotion then know that learning from their own mistakes is the key to success in this industry.

  2. #2
    Join Date
    Apr 2016
    Thanked 1 Time in 1 Post
    Forex Ability & Talent
    Good piece of advice however in my humble opinion, we should trade a demo account for a minimum of six months in order to get good hands on forex trading business.

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