There are numerous forex trading platforms that allow you trading through them and in order to start trading you have to create an account. Now there are different types of accounts that can be categorized as live and demo accounts. Demo accounts are basically for beginners to learn about trading without risking any money.
Now obviously it is good to practice one’s trading strategy with a demo account but the problem is that people stay on their demo accounts too long. A time comes when the trader has mastered the screen time and has all the relevant knowledge but when he/she starts trading with a real account, they start to lose their money.
It is good to know all the ins and outs of trading, understanding the market and charts and other relevant knowledge about trading before entering the real trading world. But if you don’t jump in and get your feet wet, you’re never going to develop the skills to succeed in the market. They are good to educate you but they are only simulations, not the real thing. Also, you are never going to get those ‘perfect’ scenarios in the real world, for example, order fills, stop out levels, prices and etc. are different in demo accounts. The reason why traders do much better on demo accounts is because there is no risk involved and no emotions clouding their judgment either.
Yes, demo trading can educate you about what trading is, but to actually start trading, live trading will be your best teacher. The goal is to master a trading strategy, once you’ve achieved that on a demo account, you can enter the real world.
Now the question is, how to get started properly on a live trading account? First off, you can start with small amounts and work your way to the big ones. You don’t want to be putting all your earnings right away because there still is a bigger chance of you losing, regardless of how good you were on a demo account.
One thing that becomes quite ironic when you enter the ‘real world trading’ is that in order to achieve success, you will need to start behaving like you did on the demo account again, that is where your emotions could not affect your actions. You cannot afford to let your emotions get in the way and throw you off your game.
Also remember, losing is a part of trading and you cannot avoid it. You are going to lose some money in order to make more the next time. Learning a trading strategy is the best way to go. The price action method is the most convenient method for the starters, but you can use any method as long as you’re comfortable with it and have mastered it.
Every trader who is looking to make a name for himself/herself, has to eventually take some big steps in order to that, and the first one is by starting to trade in the real market with a live account.