Find out if you are ready to go from a demo to a live trading account06 November, 2017 by Paula Rodriguez in Forex Lifestyle
Is it time to execute your strategy in a live trading account? Forex traders need a great trading strategy to navigate and profit from the forex market. Through trial and error, demo accounts can pave the way to successful trades. With the help of a demo account, traders can initially plan a reliable system before trading real capital. After achieving the best strategy, traders must take the next step and perform trades through a live trading account.
But first, a demo account
The most effective way to start your trading career is to practice through a demo account. Having a demo account is considered best practice for forex traders who need to develop a strategy before live trading. Without having to trade real capital, a demo account can help traders prepare the right plan of action. It can establish the right systems, ensure the best mindset and promote mastery of skill.
A demo account prepares traders to execute trades in order to reach forex trading goals. Through a demo account, you can improve your trading system, mindset and performance without real risks. With many possibilities for profit, traders can create the perfect trading strategy to confidently execute positive trades before live trading.Before trading real capital, be sure to practice and prepare through a demo account. Click To Tweet
Are you ready to trade real capital?
The goal of a demo account is to ensure that you are ready to trade real money. To achieve target profit, a demo account allows traders to fine tune methods and learn how to efficiently execute trades. After you’ve gone through planning and practicing, do you feel that you are ready to take on live trading?
Aside from having the best strategy, there are other aspects of trading to prepare for and make sure of. Here are the top indications that you are ready to become a profitable trader through a live trading account:
You’ve learned how to stick to your strategy
To consistently achieve positive trades, you will need to build a suitable strategy and learn how to stick to it. Once you go from a demo to a live trading account, the chances of straying from your strategy becomes high. Because of the real opportunities for profit, many traders start to trade by instinct instead of the calculated strategy. Before trading in a live account, make sure to expose yourself with many trading scenarios and learn how to effectively stick to your planned strategy.
You’ve had more winning trades
The perfect trading strategy is not about achieving winning trades in every execution. In fact, most successful traders say that trading losses are an important part of the journey. With a volatile market, forex trading is about increasing the chances of a profitable trade and minimizing losses. To ensure that you have a good strategy, examine the results of your trades on a demo account before going live. Study your output and determine if you have maximized your wins.
You’ve achieved mastery of skills
“Investing in forex trade is not just about capital. When you make a career out of trading, you must also invest time and effort to practicing the required skills for success.” – Master Any Forex Trading Skill Through Practice
Before trading real capital, it is vital to hone the skills needed to succeed in the forex market. Along with an effective strategy, mastering your trading skills can ensure proper executions and overall performance. Through deliberate practice, take advantage of a demo account before trading live. You will be able to enhance inner strengths and improve any weaknesses.
You are ready with reliable sources of information
An evolving market means requiring reliable sources of information. To be able to make the right decisions, it is important to find a good source of data for news and market analysis. Whether you apply fundamental analysis or not, getting correct information will be beneficial for trading success. While practicing on a demo account, try getting data from different sources and see which channels work well for you and your strategy.
You’ve learned the value of a trading journal
Traders who are ready to go live know the benefits of progress tracking. A trading journal is a great tool to note down everything you need for vital for decision making and optimization. In the long run, using a trading journal in a demo and live account is one of the best ways to view your trades and see which areas need improvement.
To have a more proactive trading journey, learn Everything You Need to Know About Getting a Trading Journal.
You’ve applied effective emotional management
According to Gregg Braden, our emotions play a vital role in overall wellbeing. He shares that emotional signals are sent to the brain to regulate the kind of chemicals the body should release. Since traders need optimal body and mind to succeed, it is important to apply emotional management in the trading strategy. In a live trading account, emotional management will be valuable to increase focus and wellness.
You’ve mastered how to use your trading platform
In order to execute trades, you will need to master your trading platform. Before risking real money in a live account, traders must master all features and tools to execute the strategy. Because of this, it is essential to know all the ways to use your trading platform for efficiency and positive output.For trading success, first optimize your performance and productivity in a demo account. Click To Tweet
You’ve applied forex education to your strategy
Forex education is a vital part of the trading success. Prior to trading in a live account, make use of everything you’ve learned in forex education. Since you are not trading actual capital yet, test different trading styles, strategies or pairs. FX Street shares that you have to test other methods and strategies before trading full time. This will help you develop the right strategy and prepare the best methods in many trading scenarios.
You’ve learned to let go of losses
One of the best ways to tell if you are ready for a live trading account is to see if you are able to let go of trading losses. Since the forex market is ever-changing, emotionally detaching from a trade is an important part of being a forex trader. When you can easily detach from a losing trade, you are ready to recover and work on the factors the led to the loss This trading mindset is key to overcoming any setbacks in a live trading account. To achieve this, you must first understand The Logic Behind Reevaluating Trading Failure.
You’ve gained confidence in yourself and your strategy
Based on Personal Excellence, being self-confident means being certain in your abilities and self-worth regardless of the situation or outcome. In a forex trading environment, it is easy to lose confidence in trading abilities and in the strategy. Because of this, a forex trader who is ready to move on to a live trading account must have great self-confidence in skills and strategy. This can be seen through positive trades in your demo account along with strong mental health to keep self-confidence in check.First, become profitable via demo account. Then, take the next step with a live trading account. Click To Tweet
For long term profitability, a demo account is a great tool to optimize trades and improve trading experience. Whether for new or expert traders, practicing through a demo account allows traders to gain experience without taking real risks. It exposes new traders to different market environments and guides them towards the right strategy. It also strengthens the mindset and skills needed to succeed in market analysis as well as executions through your trading platform. Once you’ve gone through a trial and error process via demo trading, the next step is to make real profit in a live trading account.
If you are confident in all aspects of your trading strategy, then you are ready to trade in a live account. With the goal to profit from the forex market, be sure to first optimize your strategy through a demo account. Once you’ve accomplished all important aspects of an efficient trading system, continue your trading career with a live trading account.