Being a professional trader can not be done just by learning and plunging directly into the trading market, you need some definite understanding of your skills and knowledge in mastering the way forex trading works. We have learned a lot like this in other sub articles on our website. Not everyone can get the maximum benefit from forex trading, some of them have to go out of business and look for other professions that have far-reaching potential. We do not blame you for that, because of course you have considered the decision. It's just that, if we may give advice, learning forex does not need to be grandiose to come to a mentor at a high cost, just understand through our articles and YouTube videos, we think you can understand how forex works easily. Well, on this wonderful opportunity we will share interesting information for you all about how to easily master forex with a demo account, only then can you dive right into trading with real money. You need to know in advance, before we continue this discussion, it helps you know in advance what a demo account is and why it is provided by every broker. Here is a review.
Understanding of a demo account in forex trading
One of the features provided by every forex broker on the internet is a demo account feature that can be accessed by all customers or members who have joined. This demo account is an account with a virtual value of money that can be tried by each member to trade directly based on forex trends on the same day, by using this demo account, you are expected to understand easily the workings of forex afterwards. This demo account is similar to a real or real account when you have to top up a deposit with real money, the difference is that the source of funds from this demo account is automatically in the form of virtual money given by the broker system for each user. You can learn this demo account as often and as long as possible to really master the workings of the forex game.
Not surprisingly, many successful traders are born because they often play with demo accounts before. The importance of learning this demo account will affect the way you trade in the future, from here you will be able to see whether you are a competent and disciplined trader or a trader who is just looking for profit in a short time. In addition, using a demo account you can also execute such as buy and sell or close trading positions according to the strategies you have learned in accordance with the actual market conditions. You cannot withdraw a demo account balance because it is an account to learn and is provided free by every broker you join. Even though the balance on the demo account is up, you can refill it automatically according to the existing nominal.
The purpose of having a Forex Demo account
With the presence of a demo account, of course you are wondering, what exactly is the purpose of this demo account for beginner traders, it helps you see and see below.
1. One of the objectives of the demo account is nothing but a means to mature or master the way trading works in the forex market specifically for those of you who still don't really dare to use real money. If you are used to trading with a demo account, then in front of you you can easily and more willingly to use real money. At the very least, with this demo account you can devise the right strategy in executing the market.
2. Many experienced traders still use a demo account as a trial of a new platform issued by a particular broker, this trial would want to see again whether the software is quite effective or not. You don't need to be afraid of losing money because this is free virtual funds to use at any time.
3. For a trader who is looking for a new broker, they prefer to use a demo account as a form to measure parameters of several components such as speed, server and so on of each broker they choose. So, it's like testing whether trading on broker A is better than broker B, etc.
4. For traders who have just joined the forex world, demo accounts give a real picture to everyone that the balance in the forex world can be traded with high risk factors. From here you also know that forex is high risk if not through the right strategy.
How to open a demo account?
In general, to create a demo account is very easy, you only need to join the broker you choose as a place to trade foreign currencies. There are many choices of the best brokers and we have written in other articles. Please choose one that you think is easy to operate and has complete features. In general, the balance on this demo account is limited to only 1 million, so every time the balance on the demo account can be re-submitted by automatic filling. No need to bother learning to trade with real money, just use virtual funds to test the extent of your ability to play the forex market.
8 Steps to Success in Mastering Forex from a demo account
1. First step: Understand in advance what your goals for playing forex are, if the purpose is to invest and practice trading strategies. Demo account can be the first choice.
2. Second step: What makes you like forex? Like not necessarily a hobby, think well because forex is quite high risk.
3. Step three: Use a demo account as your learning tool and finalize the trading strategy. Do this continuously until you really master it well.
4. Step four: Look for a broker that has a demo account feature with a small minimum balance ranging from 100,000 - 500,000 to train you in developing such funds into millions of rupiah.
5. Step five: Never stop if you are still unsure of your skills and abilities, trade with a demo account to reach the point where you are ready with real funds.
6. Step six: Consider carefully using a demo account, because not all traders can succeed with only virtual funds
7. Step seven: Always test every platform with a demo account to see every component that is given starting from the server, and so on.
8. Step eight: Know exactly your strategy for trading on a demo account because we often see that there are still many traders who lack discipline.
Now those are some tips on successfully mastering a demo account in forex trading. Thanks.