LESSON NO 20
What are Demo
Accounts: Almost
every broker provides free practice facility at his platform to all new traders
as well as old traders, so that before starting trading on real account trader
can make his own system, traders can know how to open and close the trades and
what things are to be kept in mind while trading. Please keep in mind that untill you have gain
success in your demo / practice account don't think about opening or starting
trading on your real / live account. If
you will start trading on live account without having practice on demo account
you will loss all of your savings.
Always take the demo account as your real account and put your trades as
you are trading in your real account, save your money, trade carefully earn
more profits and make less loss. You
must have a very crystal clear concept that why are you buying or selling and
why are your opening a trade or closing a trade, where are you putting your
Take Profit and Stop Loss and what is your lot size. These things will make you more consistent
and will give you more experience in trading and you will gain good
skills. After having all these practices
and skills now you can start trading on your real account but always remember
at the start of your real trading select micro lot size as in this way you will
have chances of very less profit but your loss will also be very less. If you will select a big lot size for sake of
high profit and if you will loss the trade your loss will also be high and
sometimes it will totally washed away your account.
Some Bitter Facts
about Forex Trading: Every trader even if he is very very
expert in forex trades will surely met some loss. In forex about 90% of traders lost their all
capital and the reason is No Education about forex, no practice on demo
account, having no trading system, lack of discipline, part time trading lack
of money management skills.
Forex trading is not useful or beneficial
for um-employed, bank-corrupts, money borrower.
Even after having alot of practice on demo account you required at least
400 USD to make your system smooth for earning profit. And if you have good strategy you can earn
10-15 dollars in single trade easily. If
you have have 500-1000 USD capital you can make it as a part time earning
opportunity, but this phenomena can be wrong in some case.
For forex trading you must have some
qualities, make a trading system and then stick with it, wait patiently for a
trading set up, learn money management and act upon it, don't do over trading,
do be greedy, make your target for example make a target to earn 50$ a day and
only work for these 50$ do be greedy and do over trading in this way you will
loss even your earned 50$.
Remember, Forex is not a game to be a millionaire
over the night, I have seen alot of attractive advertisement claiming to make
you millionaire in few days, all these are the tactics to catch the attention
of new traders, if it is true then everybody will be billionaire or even
millionaire in this world.
