You may have heard of forex live demo, where you will receive monetary benefits if you incorporate the tutorials into your trades. Currency pairs trade on many different things and live news is a way to get a handle on what is driving the market at any given time. Since the trading day goes on for twenty four hours, six days a week you can see why it can influence the currency pairings you are interested in. Combined with other platform training, going live in test demos will give you an advantage in planning your strategies. You get to test out different theories based on the news and technical information supplied online. Demo accounts are live accounts. You just save money while you are training.
The Advantages of Forex Live Demos
Everything you see in a demo account is going to be seen with forex live accounts, in which you involve real money. The only difference is the real money. In a demo you are not going to lose money if a trade goes wrong. Important lessons can be learned in such accounts actually.
What if you lost real money because you made a mistake entering in numbers and your money management orders? You might lose confidence, feel horrible, and even get dejected. For some one bad trade is the end of their involvement in the forex market. It might be due to a complete loss of capital or more likely their loss of confidence in the market.
What if you lost real money because the market moved against your position despite all the indicators in fundamental and technical analysis to the contrary? You might continue with forex live. You might be bolstered to study the market more next time and look for the subtle interventions that caused the loss. In fact you might spend so much time trying to find the needle that you miss the haystack. Tunnel vision is no good either.
Demo accounts teach you to look beyond the emotional. They are not without their disadvantages though.
Disadvantages with Forex Live Demos
Everything has two sides, a yin and yang, a way to balance. The attributes of forex live demo accounts are no different. While you have some wonderful benefits, you also have some issues that could cost you.
Just as a person can be too emotional trading on live rates with real money only to end up with a loss, others can treat demo accounts as a fake training. Instead of putting money on the forex live rates in the demo account that the person can afford they play around with the half a million bankroll. A loss through a mistake or bad market move does not faze them.
The fact is you have to treat your demo account as if it was your live account with real money in it. If you fail to account for the natural fear, instincts, and market movements with an eye for reality you will fail forex trading. Make sure you take all training seriously before you involve real funds.