When to leave your Demo Account and go Live
A demo account has many uses, and is a part of a trader’s life throughout the whole journey even when a trader has become experience or even professional, that is because a demo account for a trader is like a scrap book for a writer. Before the idea comes together it needs to be brainstormed, formed and put together. And for a trader that process includes risking money, so the practice place is a demo account.
A forex demo account is also the way to test and try out a new broker, and decide whether they are right for you. Experienced traders do not need much time for that process, as they know how brokers function and can identify their strengths and weaknesses immediately.
But then if you are a new comer and you’ve opened a live forex account, you are probably restless and itchy about the right time to go live. That is an important part of starting Forex, and you do not want to start too early but you also don’t want to start too late.
Getting too used to a Forex demo account, and never starting your engines and moving to real forex trading can be a trap, and you probably won’t ever really trade, but that doesn’t mean that going in too soon is a better option, it will lead to big losses, frustration and the possibility of quitting forex trading altogether before even trying. So other than the usual – tools, trading, pairs, technicalities of the platform etc – here are the main things you should cover during your demo account phase before moving on.
Technical analysis is one of the things you must know, and you do not want to try and learn while you are risking your money. Your platform should have technical analysis tools, spending time using those tools, and applying them, and seeing if your results are matching the real movements of the market is very important and should be on your check list.
Money Management is a very vital part of forex trading, you need to learn to control your spending, calculate your profits, and learn from your losses. You need to learn how to be efficient with your money, and careful. Find the best ways to minimize risk, and know what to invest when. If you are not aware of all these factors then you will lose money fast.
Lastly is the psychological and emotional factor of forex trading. Of course it is not possible to really practice this when you don’t have real money invested, but you need to try and keep in mind that any losses your making in the practice account will be real money lost once you go live, the more you keep that in mind the better prepared you will be.