Top 5 Things That Newbie Traders Need To Know About MetaTrader Demo Accounts
The number of trades in the Forex market has been doubled in the past decade. Even though $5 trillion transactions are being made over-the-counter, either between private customers and banks rather than currency exchanges, modern technology has greatly played its part. There are a lot of electronic activities happening in the FX market. Buyers are choosing digital platforms such as MetaTrader, pooling prices from different dealers.
For newbies in trading, the environment can be so overwhelming. Because of this, FX brokers are advising traders to trade on demo accounts first before getting into the real battle. It works very easily and helps you to learn about FX trading, risk-free.
What is an FX Demo Account?
A Forex Demo Account is a type of trading account that can be opened on almost all trading platforms. It greatly helps traders experience the real feel of trading in the FX market without taking the risk of investing your money. There are different demo accounts offered by different brokers. Some brokers opt to develop their own trade setting, while others utilize white-labeled platforms personally customized. Some traders also choose to buy licenses from platforms such as MT5 and MT4.
Trading in a demo account is the best way to practice trading life, without risk since you won’t have to deposit money as capital. Here are other things that you should get familiar with when it comes to demo accounts.
Demo Account Makes You Learn More About the Platform
If a trader jumps directly into live trading, without giving much time exploring the platform or checking its functionalities, it would be too difficult to adjust to the trading environment, even for those traders who already have vast experience in trading. Being comfortable with the platform should be your first step to success.
Testing New Strategies and Refining the Old Ones with Demo Accounts
Demo accounts are not precisely for new traders only. Experienced traders can also benefit from it. They can try new trading strategies and also polish those existing ones. If you came across a string of losses, then most likely, demo accounts are the best place to understand the loopholes of your trading plan and strategy.
Learning About Technical Indicators Using Demo Accounts
Traders have to become well-versed with their technical indicators as these will help them when they enter or exit a trade. Moreover, they will understand price actions and how these prices react when it comes to supporting and resistance levels. They should also understand the differences between bar charts and candlestick charts if you aim to become a trend trader.
Understanding the Emotions and Controlling it Thru the Help of Demo Accounts
You can come across a lot of emotions when you trade. This is justifiable since you are investing your hard-earned money and your precious time as well. But these emotions are actually unnecessary if you have a strong trading plan. Demo accounts in MetaTrader will help you handle these emotions and control them to avoid them from interfering with your trades. Demo accounts will also help traders understand their own strengths and weaknesses.
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