Pros and Cons of Trading Forex in A Demo Account
Trading may be a skill that takes time to be told. consider it like Boxing it’s also a skill that takes time to find out. If you get into knowledgeable prize ring with none training, you’ll get beat up physically! If you get into the Forex ring with none training, you’ll get beat up financially!
The similarities are that both the examples are Skills, and both require psychological preparation. The difference is that one is physical and the other is financial.
We can live through a physical beating usually during a few days or weeks, BUT a financial beating is often devastating and simply affect us for the remainder of our lives, not only does it hurt our pocket, but it can cause problems with our relationships and family. So, after we get into the Forex ring we’ve got to be prepared.
The Professional Boxer
When knowledgeable boxer gets within the ring, he has already been practicing in an exceedingly safe environment usually for years, this safe environment is where he can make mistakes without having medical treatment. He may spar with other opponents that have more skills and knowledge then he does, and he learns from them. He also has someone there to look at him and provides advice and guidance.
Then when he’s ready, he gets into the ring and boxes for real, he’s accepted the danger and KNOWS that he can get hurt, but he’s also studied his opponent and done his homework, so he KNOWS he features a good chance. He can still lose this round but if he wins most of them, he will take the cash home.
BUT! What about the psychological side? Does he fear moving into the ring? Sometimes! But he’s attentive to it and he can control how it affects him in an exceedingly way that’s beneficial. Will he be pondering the cash hell make? Or will he be puzzling over the fight as is happens and planning his next moves during the breaks? He’ll be analyzing the results from the previous rounds and making changes in his strategy for the following round.
The professional Trader
Can you see what’s coming next? If so than, you’ve learnt to investigate what you read and form a projection into the long run. (A very valuable skill for the FOREX Trader) A forex trader, just like the professional boxer, won’t get into the Forex trading ring without being prepared first. He won’t spend years practicing within the Demonstration Account, but he will a minimum of have spent a month or two or three, sparing with the Forex Market in a very safe environment that he won’t get beat up in.
He’ll Practice trading forex against all the opposite traders and learn from them, and hell even have someone watching him and giving advice, and guidance.
Then when he’s ready, he’ll get into the Forex trading ring and trade forex for real, he’s accepted the danger and KNOWS that he can get hurt, but he’s also studied the Forex market and done his homework, so he KNOWS he incorporates a good chance. He can still lose on this trade but if he wins most of the trades, he will take the cash home.
BUT! What about the psychological side? Does he fear stepping into the forex trading ring? Sometimes! But he’s conscious of this fear, but he can control how it affects him, in a very way that’s beneficial to his forex trading. Will he be wondering the money hell make? Or will he be pondering the items that are influencing the market as is happens and planning his next trades while he waits for the results? He’ll analyzes the results from the previous trades and making changes in his strategy or continuing with the one that’s working and planning for the following Forex Trade.
So, it’s easy to work out that trading with a Forex Trading Demonstration account are a few things everyone should do before going in a live Forex Trading account.
The practice account will give the trader MOST of the talents necessary, to be ready to trade profitably, giving them the training ring to spar in.
BUT an enormous WARNING!!!
Like the Boxer the Forex trader has learnt to manage his emotions, this is often overlooked by new Forex Traders. BUT is maybe what separates the successful investor from those that keep getting beat up!
If you’re considering stepping into the Forex trading Ring, then make sure to practice first, and find all the knowledge you’ll be able to about controlling your emotions.
Fear, greed, impatience, are the most culprits of economic bashings, so keep an eye fixed out for them, and learn the way to beat them before you get within the ring with them.
Understanding these emotions will enable you to use them to your advantage in understanding the market, the market is influence by these emotions and if you understand them, you’ll be able to have them on your side, thus providing you with a plus.