Do you really think there are two sides to Forex practice? Well, there are because it differs according to the traders. There are some traders who take the maximum use of the training period whereas some misuses it.
To be honest, some traders believe that the longer they stay in a practice account the better they perform. This is actually not true. Just because you spent more time on practicing wouldn’t make you a better trader. You should utilize the practice session to understand trading in the best possible way.
Do not ever dream that spending more time on a practice account will make things easier when you trade the live account. You would have to face the pain of hard work to achieve success. As traders, you should understand the reality of trading. You shouldn’t take practice account for granted.
The practice account is to learn Forex and the way to know how everything works in the market. You should start your journey with a practice account so it helps you to get the market vibe. But you shouldn’t assume that it will make your trading path painless. If you ask a professional trader he would say the experience in a demo and live trading. Anyway, a trader should know both the good and bad sides of practice account. It is time to learn those.
Trading in Forex
Those who are completely new might say investing money in trading education is nothing but a waste of time. But in reality, this is the best thing you will ever do as a Forex trader. The spread betting industry is extremely complex and it requires proper guideline to become a successful trader. To find an expert trader and try to get a clear guideline to trade the market. But never follow other people trading system to become a successful trader.
Pros of practice in Forex
A practice account is vital in trading. Without proper Forex training, the traders wouldn’t be able to understand or trade the market. When he or she is new to the market everything may seem foreign if it wasn’t for the practice account. Anyway, in Forex trading the price action plays a role that none of the strategies could overlap, it is really successful.
At wsj.com, they stress that even a naïve trader will use price action without any hesitation. In fact, it is one of the reasons why naïve traders remain in the market despite the losses they make. They still trust price action. However, you are aware that price action much better than any other trading strategy so you can use the practice account to understand price action even better.
Another importance of practicing Forex in a demo account is to get familiar with the platform. You do not have to risk your live trading account by just trying out trading on different platforms. It will cost you real money. Rather you can use the demo account to check out a few platforms. Find out more at bloomberg.com.
Cons of practice in Forex
This is one of the hardest things in a practice account. You wouldn’t know whether it helped to create fake emotions or real emotions until you fail in live trading. A practice account loss wouldn’t be something that you would worry or regret because you know that is fake money. This is not healthy for a successful trading journey.
You are forced to believe that you can make money out of any type of trades despite the risks and challenges in the market. But it is not the reality, is it? You cannot look at trades in such a simple way when you are in the real trading environment. You would even take time to think whether to enter or not, the scenes totally differ. However, again it depends on the one who trades, he should be wise enough to treat practice account as it needs to be treated.