This article looks at the demo accounts that forex brokers offer and how to use it correctly.
Before you trade on the live market you need to use a demo account. The demo account is a simulation of the market that all forex brokers will offer you. You should be able to open a demo account without having to commit to anything with the broker. When you use the demo account you need to ensure that you are using it correctly. If you do not use the demo account correctly then you are not going to get the full benefit of the experience.
The Use of the Trading Platform
When you first start using the demo account you should get used to the trading platform. The trading platform that you get with the demo account will be the same as the trading platform that you get with the live account. Of course, there are some forex brokers that put less effort into the platform that you get with the demo account. You should consider this when you trade because it could affect the experience that you have with the demo account.
When you get used to the trading platform that comes with the demo account you need to consider how you access the different areas. It is important that you first consider all the aspects of the trading platform before you start using the demo account. You should look at how you access the charts and where the different orders can be found.
The Currency Pairs the Forex Brokers Have
When you use your demo account you should only trade with the currency pairs that you will use on the live market. This means that you should not use any of the other currency pairs that you have access to. When you use other currency pairs you could be starting a bad habit. This bad habit will be using the incorrect currency pairs to trade with.
The only time that you should use different currency pairs is when you test which pairs will be ideal for your trading. There are many trading strategies that of not tell you about the currency pairs that you should be using. This means that you will have to determine which currency pairs you have to use. This is the only time that you should use more than one currency pair on the demo account.
Sticking to Your Strategy
The demo account not only allows you to test your trading and practice what you need to do. It will also help you create good trading habits. One of the good trading habits that you should have is to stick to your trading plan. When you stick to your trading plan on the demo account you are more likely to stick to your trading plan when you trade live.
Sticking to your trading plan also allows you to determine whether or not the strategy will work. If the strategy does not work on the demo account then there is a high chance that it will not work on the live market. When this happens you should consider changing something in the strategy so that it will work on the market.