Gold Spot / U.S. DollarEducation
SHOULD YOU TAKE DEMO TRADING SERIOUSLY?
Over the last couple of years, the trading industry has evolved and new traders that come into the business just get it going with a live account without going through a demo account first. In fact, trading a demo account these days feels so much like a waste of time.. But should it be this way?? Should you trade a demo account, or even take it seriously? Plain simple, YES.
You see, trading demo and trading live are two completely different environments. Trading a demo account is wayyyy easier for many reasons. Still, you must start with a demo account.
I am a big fan of trading demos before putting real money on the line. Some new traders question why they should take it seriously when they can shorten their learning curve by going live. They tend to slack off, knowing that there’s nothing on the line. But trading demo is important to your learning curve.
Here are some benefits of trading a demo account:
1. You familiarize yourself with the trading platform:
Since you’re just starting, you can go around the look and feel of your trading platform. You can put on trades without risking any money.. It then becomes easier for you to understand how to take a trade, how to close or modify a running position, the different tools, order types and everything else in connection to your trading. This will make you more relaxed.
2. Create your trading system:
Trust me, you cannot create your boulevard trading system using a live account. It won’t work and it’s never advisable. Using a demo account, you can get all the trial and error you need. Here, you can create, test and develop trading concepts, strategies, and styles to use in the live markets. Being able to trade without risk allows traders to be more creative in terms of testing and finding out what works best for them.
There’s no shame in starting with a demo account. It’s where all the pros first harnessed and developed the skills to become profitable later on in their years. Demo trading offers a lot of things that simply can’t be understood by reading a book or listening to someone. It is ultimately an educational tool, and its benefits cannot be denied. Don’t think that it’s a waste of time. You can still make changes at the eleventh hour.
As a rule of thumb, start with a demo account until you have a simple, logical, working profitable system, and then go on to a live account. There’s still a lot to learn once you go live. It’s the beginning of another journey.
The heart of the matter, the salient point, the pith, the gist, the bottom line is - Begin with a demo account and learn how to trade safely first. Once, you have developed your system, go live. You can become profitable. Go get it!
You see, trading demo and trading live are two completely different environments. Trading a demo account is wayyyy easier for many reasons. Still, you must start with a demo account.
I am a big fan of trading demos before putting real money on the line. Some new traders question why they should take it seriously when they can shorten their learning curve by going live. They tend to slack off, knowing that there’s nothing on the line. But trading demo is important to your learning curve.
Here are some benefits of trading a demo account:
1. You familiarize yourself with the trading platform:
Since you’re just starting, you can go around the look and feel of your trading platform. You can put on trades without risking any money.. It then becomes easier for you to understand how to take a trade, how to close or modify a running position, the different tools, order types and everything else in connection to your trading. This will make you more relaxed.
2. Create your trading system:
Trust me, you cannot create your boulevard trading system using a live account. It won’t work and it’s never advisable. Using a demo account, you can get all the trial and error you need. Here, you can create, test and develop trading concepts, strategies, and styles to use in the live markets. Being able to trade without risk allows traders to be more creative in terms of testing and finding out what works best for them.
There’s no shame in starting with a demo account. It’s where all the pros first harnessed and developed the skills to become profitable later on in their years. Demo trading offers a lot of things that simply can’t be understood by reading a book or listening to someone. It is ultimately an educational tool, and its benefits cannot be denied. Don’t think that it’s a waste of time. You can still make changes at the eleventh hour.
As a rule of thumb, start with a demo account until you have a simple, logical, working profitable system, and then go on to a live account. There’s still a lot to learn once you go live. It’s the beginning of another journey.
The heart of the matter, the salient point, the pith, the gist, the bottom line is - Begin with a demo account and learn how to trade safely first. Once, you have developed your system, go live. You can become profitable. Go get it!
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