The importance of demo trading

[Ivo Zetticci]

As we know forex is a risky market, many people don't understand the importance of demo trading. But demo trading is the best way to acquire basic trading knowledge. It is a risk-free account. New traders should try it first. However, my broker, Eurotrader, offers a free demo account with flexible capital adjustments. This broker also offers MT4 & MT5 trading platforms with no additional charge during withdrawal.

 

[ojo2021]

Demoing is very important that is when you have a strategy on ground. The first thing you need to work upon is to get a good strategy for about 70-90%. Try it on demo for like 6-1year. If you are consistent. Then you can register a live account with any broker of your choice.

 

[Jack Reacher]

Before we can start trading, it is important to be able to use a demo account. Every broker now offers a free demo account. My conviction is that the Demo trading conditions must be identical to the Live trading conditions. That is why I trade with the Eurotrader broker. This demo is used frequently by me to test my systems before I apply them on a live account

 

[eldavis]

Demo trading was actually ment for new and even old traders. New traders can make use of demo accounts to get a better understanding of how trading works, and to get used to the forex market and even practice their trading skills to improve their trading abilities. Old traders can make use of a demo account to practice more and as well try out new strategies before testing it in their love account.

 

[Iqra]

The best advantage of using a demo account is the fact that is free, its means you will no need to put any money at risk.

 

[rextee]

Not only for new traders but demo accounts are also very useful for experienced traders to backtest their strategies. It’s been almost 2 years that I been trading but I still use the demo account on coinexx to modify my strategy or test a new system. It’s a part of my risk management strategy, never apply any new strategy straight on live.

 

[btaliat]

The importance of using demo account in forex trading cannot be over emphasized. There is always better reason why we need to get familiar with the use of demo trading before we start forex trading just to enhance our chance of being a better trader.

The first importance is that it is very cheap. Demo is free and requires no money before it can be used. There is virtual money which will be deposited in the demo account to serve as the money to trade with. This means the traders won't lose anything in real life and won't win anything as well.

It prepares the traders to what they are likely to face . It is just like compendium that a student preparing for exams needs to read to get himself familiar with the kind of questions he's likely to face in his exams. With demo account, the new member will be equipped with some skills like patience, analytical skill and even problem solving skills.

It is not only useful for the new traders as old and existing traders need to perfect what they have learnt and even learn more on demo account. It is not a gainsaying that forex teaches us lessons everyday and to make ourselves relevant, we need to keep updating ourselves with the freshest news.

 

[pawelkolasa]

The importance of using demo account in forex trading cannot be over emphasized. There is always better reason why we need to get familiar with the use of demo trading before we start forex trading just to enhance our chance of being a better trader.

The first importance is that it is very cheap. Demo is free and requires no money before it can be used. There is virtual money which will be deposited in the demo account to serve as the money to trade with. This means the traders won't lose anything in real life and won't win anything as well.

It prepares the traders to what they are likely to face . It is just like compendium that a student preparing for exams needs to read to get himself familiar with the kind of questions he's likely to face in his exams. With demo account, the new member will be equipped with some skills like patience, analytical skill and even problem solving skills.

It is not only useful for the new traders as old and existing traders need to perfect what they have learnt and even learn more on demo account. It is not a gainsaying that forex teaches us lessons everyday and to make ourselves relevant, we need to keep updating ourselves with the freshest news.

I totally agree! Even though a demo account is important as it helps a trader to get acquainted with the trading platform and build a certain trading strategy but doesn’t allow a trader to work on their trading psychology as the trader is not using real money.

 

[Reinow6]

The importance of demo trading is to get some experience before the real trading

 

[Sotherefore]

Even if we are to engage in demo trading I don't really think this is a full guarantee that a person can be able to make money perfectly with trading of volatile market when he or she does not really understand what trading is all about .

It is not just the normal experience you are thinking but I believe it is just the ability for you to understand the basic of how to predict the volatile market and these basic is what is needed to trade the volatile market profitably and a trader must understand it perfectly if he or she is really interested to make money with it.

There was a time I was trading with a demo account then that I was introduced newly into Forex but it was still losing because I didn't really understand what to base my prediction on. And beside then I was just new into the forex space.

Demo accounts can only make sense when you have learnt everything that is needed to trade the market perfectly , from there you use the demo account to test your trading skill , without having the skill you will not likely be able to achieve anything with a demo account.

 

[Mary Frederick]

There is no way to deny the importance of demo trading because demo trading is the initial stage to developing a trader. Every single broker allows traders with a free demo account where traders can apply different strategies to check them and to apply them in real trading.

 

[Wordsmith]

Demo accounts seem boring to new traders, but they play an important role. 95% of the traders lose their trading account because of no trading skills. And skills develop when you practise. Now, it is where demo accounts are helpful. You can use them to test trading strategies, multiple times, without worrying about losing money. How much time you spend there depends on you. But ideally a demo trading experience of 6-12 months prepares traders to handle the technical aspects of trading.

 

[Heiden Lang]

Trading using a demo account is quite a different experience from trading done through a live account. Demo accounts are geared to help devise strategies and practise them before investing your hard-earned money. Also, it aids preparing for the mixed emotions traders face because of the highly liquid and volatile nature of the market. So, in my opinion, it is extremely important to trade using a demo account before you go live.

 

[Eduard Hahn]

To develop trading psychology, a trader needs to enter a live trading environment. He should ideally be using a small deposit account and slowly try working on emotions in live trading.

 

[Setho]

As a forex trader or anybody who wants to start taking advantage of the financial market it is very important that you should follow a step-by-step process .
The first thing you have to do is to build your knowledge about the financial markets and also how you can be able to make money from them by developing strategies and knowing when to buy and sell which is the basis .

After you must have learnt all that it is not just enough for you to deposit $100 and try flipping it 1 million within a week . There are so many things that are attached to forex like discipline and not trading with emotions or chasing your losses which naturally does not have anything to do with your technical analysis of fundamental analysis and your setup.

A demo account which you can open for free with any forex broker is going to allow you to be able to practice all the things that you have learnt during the learning face to see if you can be able to develop them.

It is also going to give you insight about things that you miss during the education phase so that you do not make the mistake when you start trading with real money.

 

[Chlamys]

Trading without skills is like riding a bike without headlights in the dark. You can’t directly jump into the live market without any trading skills. So if you have some on-hand skills, demo trading is essential. On a demo trading account, you can learn trading skills, without having to worry about the risk of losing money.