If you have read my articles before, you probably understand that I have the strong opinion about newbies trading. I am sure that all traders must begin trading only with a forex demo account. Please don’t open a real money account immediately after you start to get interested in forex trading, the same with other financial markets. I know that you want to try real trading, not after some time, but today! That’s not a good idea, believe me, the market will be there forever, don’t rush. So, first of all, focus on learning, not on trading and making money.
For example, before you want to buy a car, first of all, you want to try it on a demo test drive.
I can guarantee that 99.9% of the newbies will lose at least one deposit. I mean that almost all newbies come to the forex market, open a real trading account and are trading randomly or are using ten indicators, but these indicators are showing the same thing and believe that they have ten confirmations to open a trade – forget it!! In today’s retail forex industry, most brokers offer demo trading, so let’s try it first.
So, all you need to do is to open a demo account with any broker, download platform and start researching.
After you have a downloaded platform just try to get familiar with some function, like how to open a chart, how to sell/buy, how to choose trade size, set stops, limits, etc. I want you to understand that these things above are only technical options, so don’t think that you are ready to trade. Of Course, you can try to trade randomly, as most newbies do. I am just saying that you will see that in the long run random trading is not working. Let’s see what your results will be after three months.
Don’t let success fool you, if you open some trades without any money management and see that you doubled your deposit that means nothing, it is just luck.
I started trading in the real account immediately, no demo accounts. So after these years, I can say that was not the best choice.
Let’s imagine that you have just opened a trading platform and started trading. Word “trading” is not suitable for this situation; it has nothing to do with real trading.
In the beginning, you don‘t even have any strategy, any rules, how can you make money?
If you enter the phrase forex demo account or similar in Google you will only find forex brokers’ websites, not valuable information from the other side.
Even today I use forex demo account to do some research about new trading strategies if I’m not sure about the trade, I don’t open it in real account, only in demo. In other words, I use demo account for research.
Many people can say that demo trading has nothing to do with real trading, and you need to start only with real trading. I agree somehow that in demo account have some differences compared to actual trading. It’s easy to open a real account, transfer a deposit and start trading, but what you will do next? Will you try to create a trading strategy using your hard earned money? Not a good deal. I always say if you can’t make money on the demo account, why do you need a real account? In the financial markets, so many people are losing money. That is because they don’t know what they are doing. They don‘t have rules and don‘t follow them.