As a trader new in this business, Learning from experienced traders is advisable. Sure, you will be faced with challenges and one of the best methods of solving them is to seek for solutions.
Forex trading is a very risky business and it requires you to be very careful when making decisions. A lot of newbie get confused because of the wrong orientation about trading demo.
Some believe that it’s a waste of time, while others take it very lightly. The question is what do you think about demo trading?
A topic was raised on roboforex forums, ‘’Is Demo account very helpful or not? There, a lot of trader who has made much progress trading with it spoke more on its important.
Below are 10 helpful lessons you will learn from an experienced forex trader, Yohay Elam.
Yohay Elam is an economist; he is the CEO and founder of Forexcrunch .com
Q.1 Yohay, how can you define demo trading?
A.1 Demo trading means trading on real market movement with the real platform of the broker without risking real money.
It enables you to learn forex trading and helps you to know the platform, but it doesn’t provide you with the real psychological experience-that you can only get from trading real account.
Q.2 How important is Demo Trading?
A.2 Demo trading is a must for new traders and also very important for experienced trader that consider switching to a new broker. In short, it’s very important.
Q.3 Elam, why do you think a new trader should trade demo before trading
A.3 Demo trading is a very useful tool to get acquainted with forex trading, without risking money. And it also helps you to understand the trading-platform better.
A newbie can try various systems before opening a real account and put them to good use.
Q.4 From your experience in trading security commodities, what impact can demo trading plant in a newbie?
A.4 Well, DT can provide some level of comfort for a newbie trader.
Q.5 From your years of trading and tutor, how much do you think a
trader should open a demo account with?
A.5 If possible, I would recommend starting a demo account with the amount you intend to use in opening a real account. This provides a closer simulation of the real thing.
Q.6 Can a trader build his own trading strategy trading demo?
A.6 Sure, it is worth experimenting with. You can try more than one broker. However, it is important to remember that real trading is somewhat different from trading demo because of the psychological effect.
Q.7 Over these years of trading Yohay, how serious should demo trading be taken?
A.7 It should be taken seriously for training and for getting more comfortable, but it is also important to remember its limit.
Q.8 Being an experienced trader, how long does it take to master demo trading?
A.8 It should take as much as necessary for the trader to feel comfortable before depositing real money–for patience is a very important virtue when learning forex trading.
Q.9 Is there any disadvantage of trading a demo account?
A.9 The potential disadvantage is that the trader will assume that trading with virtual money fully mimics trading with real money. One must be aware of the tension associated with trading with real money.
Q.10 What advices do you have for both potential and experienced traders
in forex business?
A.10 Never trade with what you cannot afford to lose.