So, you have learned everything there is to know about Forex from pips, spreads, margins, leverage, brokers, and trading costs, and all that’s left to do is log in, select those charts, and start trading. Right? Hang on! Despite doing well on a demo account — great in fact — once you get into live Forex trading, losses can mount very quickly. This is the reality most new traders face. How? Let’s find out!
That’s why most expert Forex traders use demo accounts to assess and value a broker’s reliability before depositing their finances with them. You should also open a demo account with the same broker you intend to use for live trading.
It’s crucial that you should also understand slippage and the broker’s usual pip spreads (trading costs) before setting orders so that you can account for them. You should be familiar with the analysis tools and be aware of the deposit and withdrawal options as well.
If you need help making a choice, you can check out the 10 things you should know before you open a Forex account to help you make a smart decision.
You shouldn’t treat trading as a get-rich-quick plan, instead, focus on profit over the long term. Don’t be too hard on yourself if you’re not getting consistent profits while trading on a demo account. Instead, develop strategies that will help you minimize your losses and maximize your profits by identifying high-probability setups with reasonable reward-to-risk ratios.
It is also a good idea to monitor the profitability of your demo account regularly. By doing this, you’ll know whether you’re on the right track and can see what needs to be improved. Learn how to measure your trading performance to help you evaluate how good or successful you are as a trader.
With a demo account, you can experiment with different strategies and adjust them until they work. You should only move to live Forex trading once you have a strategy you feel comfortable with, and a good understanding of the analysis tools and indicators. If you don’t have a set trading account yet or if it needs some improvement, here’s how to develop a successful Forex trading plan to maximize your profits.
Do not forget that the Forex market is prone to volatility, and there are times the market can go crazy, leaving you doubting your analysis and trading abilities. If you are faced with these difficult times, your risk management plan may be all that can protect you.
A successful Forex risk management strategy also begins with developing a well-thought-out entry and exit strategy. This way, you know you are always in control of your capital and hopefully, you will also avoid suffering larger losses in the long run.
A loss can be led to impulse decisions that have nothing to do with your strategy. Despite feeling as if everything is going wrong, it is crucial to remain calm. As a beginner, it can be a bit overwhelming, which can make it very tempting to react. However, developing sound trading psychology contributes significantly to the decision-making process of any trader.
You don’t have to invest a large sum really to start with live Forex trading as it varies from broker to broker. You can start investing with AximTrade accounts with as little as $1 and start your investment journey instantly. Based on your trading strategy, experience, and investment capital, you can choose from a variety of account types.
However, a small investment capital means smaller lot sizes, fewer opportunities, and lower profitability. Small gains can frustrate traders and make them give up. The transition from demo to real trading can be easier if you begin to trade Forex with $100. While it may seem that $100 doesn’t buy much these days, it can get you started in Forex trading and even provide you with additional income.
Original Article: When You Can Move from Demo to Live Forex Trading Account
Disclaimer: This post is from Aximdaily and it is considered a marketing publication and does not constitute investment advice or research. Its content represents the general views of our editors and does not consider individual readers personal circumstances, investment experience, or current financial situation.
7 Signs you are ready to move from Demo to Live Trade
So, you’ve successfully applied your strategies on the demo account and think you’re ready for Forex live trading? That’s great! But how can you be sure you are ready to switch to live Forex trading? Well, the following is the checklist that will help you decide if you are ready to trade live.1. You feel comfortable with the Broker & their Trading Platform.
It is imperative that you become familiar with your trading platform very well before you open a live Forex account and invest your hard-earned funds in your trades. Isn’t it frustrating to realize that you have no idea how to exit a trade at the exact moment you’re about to do it?That’s why most expert Forex traders use demo accounts to assess and value a broker’s reliability before depositing their finances with them. You should also open a demo account with the same broker you intend to use for live trading.
It’s crucial that you should also understand slippage and the broker’s usual pip spreads (trading costs) before setting orders so that you can account for them. You should be familiar with the analysis tools and be aware of the deposit and withdrawal options as well.
If you need help making a choice, you can check out the 10 things you should know before you open a Forex account to help you make a smart decision.
2. Your demo account has been consistently profitable.
It is not a good idea to transition to live Forex trading if you aren’t making consistent ‘wins’ on your demo account. You could demo trade until you are profitable on 70% of your trades. Maybe just 60%.You shouldn’t treat trading as a get-rich-quick plan, instead, focus on profit over the long term. Don’t be too hard on yourself if you’re not getting consistent profits while trading on a demo account. Instead, develop strategies that will help you minimize your losses and maximize your profits by identifying high-probability setups with reasonable reward-to-risk ratios.
It is also a good idea to monitor the profitability of your demo account regularly. By doing this, you’ll know whether you’re on the right track and can see what needs to be improved. Learn how to measure your trading performance to help you evaluate how good or successful you are as a trader.
3. You have a well-set Trading Plan.
Remember that when it comes to live Forex trading account, you are dealing with real money and real trades. Hence, before you make the switch, be careful not to mess up your trading strategy. You should have developed some sort of trading plan for your demo account. The strategy you use in live trades will change and adapt as you get more comfortable. And you should know how to tweak it until it starts working consistently.With a demo account, you can experiment with different strategies and adjust them until they work. You should only move to live Forex trading once you have a strategy you feel comfortable with, and a good understanding of the analysis tools and indicators. If you don’t have a set trading account yet or if it needs some improvement, here’s how to develop a successful Forex trading plan to maximize your profits.
4. You have clear-cut risk management strategies.
It has been said that 50% of your success in Forex trading depends on developing profitable strategies. The other 50% relies on an effective risk management strategy. On that note, having a well-thought-out set of risk management rules is also a must when switching from a demo to a live Forex trading account.Do not forget that the Forex market is prone to volatility, and there are times the market can go crazy, leaving you doubting your analysis and trading abilities. If you are faced with these difficult times, your risk management plan may be all that can protect you.
A successful Forex risk management strategy also begins with developing a well-thought-out entry and exit strategy. This way, you know you are always in control of your capital and hopefully, you will also avoid suffering larger losses in the long run.
5. You don’t lose your cool during a losing trade.
Yes, if you’re able to make smart decisions in your demo account without getting carried away by emotions, it’s time for you to start trading with a live Forex trading account. However, keep in mind that live Forex trading demands a higher level of emotional control than trading on a demo account. Because you’re trading with real money, and the figures change all the time.A loss can be led to impulse decisions that have nothing to do with your strategy. Despite feeling as if everything is going wrong, it is crucial to remain calm. As a beginner, it can be a bit overwhelming, which can make it very tempting to react. However, developing sound trading psychology contributes significantly to the decision-making process of any trader.
6. You have enough capital to get started.
For live Forex trading to be successful, you need to have a reasonable amount of capital at your disposal. However, it’s important not to risk more than you can afford. Using a demo account will help you gain a better understanding of how much you can invest in a trade and how to use Forex leverage to your advantage.You don’t have to invest a large sum really to start with live Forex trading as it varies from broker to broker. You can start investing with AximTrade accounts with as little as $1 and start your investment journey instantly. Based on your trading strategy, experience, and investment capital, you can choose from a variety of account types.
However, a small investment capital means smaller lot sizes, fewer opportunities, and lower profitability. Small gains can frustrate traders and make them give up. The transition from demo to real trading can be easier if you begin to trade Forex with $100. While it may seem that $100 doesn’t buy much these days, it can get you started in Forex trading and even provide you with additional income.
7. Your trading style is clear to you.
Since trading with a demo account allows you to try all kinds of trading styles, before moving to a live Forex trading, it is easier for you to decide what kind of trader you would like to be. Following are the four most common types of the trading strategy adopted by traders:- Day trading — The process of buying and selling currencies within one trading day. If you are among the thousands of traders looking to grab the bull by the horns and earn a living, Forex day trading could be an ideal career path for you.
- Scalping — Scalping is the most popular short-term forex trading strategy that involves entering and exiting positions within a few seconds or minutes.
- Swing trading — A swing trading strategy is perhaps the best Forex trading strategy for beginners. Forex traders use swing trading to profit from price swings using a medium-term trading style.
- Position trading — It is a type of trading that lets traders keep their trades open for a long time. The objective of positional trading is to sustain a position for one or more days, weeks, or months, depending on your objectives.
Original Article: When You Can Move from Demo to Live Forex Trading Account
Disclaimer: This post is from Aximdaily and it is considered a marketing publication and does not constitute investment advice or research. Its content represents the general views of our editors and does not consider individual readers personal circumstances, investment experience, or current financial situation.
