While trading forex demo can provide a great way to share and learn about forex trading, live forex trading is generally not smooth graduation for most traders. Unlike the widely accepted opinion that with enough practice on a demo trading account, traders could really take advantage of trading live, reality tends to paint a different picture.As a trader who currently trading on a demo account, the following factors should be considered especially when you venture into forex live trading from a demonstration environment.
Mind your capital and leverage
One of the important aspects when switching to a live trading account is to keep in mind the initial capital you want to trade with (the risk capital) and leverage over you choose. If you look closely, most demo trading accounts start with $ 5,000 or more (unless you are able or have been trading with demo funds that are more realistic and similar to what your actual investment would summer).most traders often tend to make the mistake of trading with a demo account at the start of the $ 100,000 capital and a leverage of 1: 200 and end up trading with $ 500 and 1 :. 400 leverageAs you can see, regardless of the strategies or methods that you able to practice with a demo account, things change when the variables are changing, which in this case happens to be lower capital and higher debt.
It is therefore important for traders who are really serious to make a profit from forex trading, you should always make sure your demo account parameters such as demonstration of capital and leverage reflects the true money you intend to trade with at some point in the future.
trade Emotions
negotiating emotions tend to change when you move from a demonstration environment for real trading account. No matter how much one can say that this is not true, at a subconscious level, you end up taking more risk with a demo trading account in relation to trading with a live forex account.Factors such as analysis paralysis, doubts about your existing positions and so on tend to play a more important role when real money is involved.The best way to overcome these emotions is to ensure that, in addition to trade with the same conditions as you did on a demo account, you should also look to be very confident and familiar with a system exchange or strategy. This ensures that when real money is involved or when trading in a live environment, you are better placed to deal with emotions.
Market conditions
While most brokers now offer a day, a similar near real time power on a demo account, are subtle differences to a live stream account. One of the most common of these being the variant spreads that you might encounter when trading with a forex broker ECN for example. In real time, the gaps tend to widen or narrow over time that you are trading and news information that is about to come out.A demo trading account usually insulates merchants to these market conditions in real time, but they are hard to avoid when you are trading on a live forex trading account. Spreads are therefore a factor to consider and keep in mind when trading on a live account for key economic releases.Although real forex trading is not very different from a demonstration environment, traders should be aware that in most cases that no factors that are not recognized actively tend to play a role in commercial decisions and those that may determine the difference between a winning trade and a losing trade.As a final sign of the peak, traders are encouraged to maintain a trading demo account and a live forex trading account with similar parameters (read even as equity and leverage ) and simultaneously placing positions on both accounts (demo and real).In a few weeks and a few trades later, look back at the performance of both the demo and live account trading will certainly reveal some interesting information about your trading habits.
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