Is it possible to earn a demo account
Happy Friday! Gets it out of my system and I can watch it and hopefully learn from it.
However, my demo account is growing, and my live account is dropping… FAST! How would you recommend making that connection? Making the switch from demo trading to a real money account is a big step and is often not without challenges.
One of two dilemmas tends to arise when making the transition from a demo account to a real money account. The good news is there are a few potential solutions. Both refer to the use of your money versus trading fake money in a demo account.
How to Approach Demo Account Trading
What is risk capital? So if you plan on trading your rent money, you may want to rethink your approach. The same goes for any money you need for food, is it possible to earn a demo account or any other costs required to live your life.
Also included in this list is cash from credit cards. I realize some cards let you take out cash advances.
HOW TO CREATE A FOREX DEMO ACCOUNT
And although U. All of the above leads to one inevitable outcome… Your emotions are likely to get the best of you. Trading Forex successfully is hard enough as it is. Now, think about the statement you just wrote.
Read it out loud if you have to. Just keep cutting your risk in half until you get your confidence back.
Are Demo Accounts An Indicator of Investing Skills?
Once you get it back, you can begin to normalize your risk per trade. Your trade plan, on the other hand, is how you intend to win the battle. Your trading plan should include things like the strategies you utilize, the time frames you trade and your minimum risk to reward ratio, among other things.
Your trade plan will be specific to the setup at hand. It should include things like your stop loss and take profit values as well as other key levels that could become a factor.
It all goes back to money and emotions. So you have to account for every possible outcome.
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For instance, the questions below are just a few you should be asking. What are my stop loss and take profit levels? How much am I risking and am I comfortable losing the entire amount? Is there any news coming up that could affect my trade?
How to Seamlessly Transition From Demo Trading to Real Money
These are all things you need to account for before you put money at risk. Because once money is on the line, it becomes much harder to differentiate the facts from your emotions. You see, many traders think that the balance of a demo account is inconsequential.
What does that have to do with performance? A lot, in fact!
Which outcome is more likely to persuade you to relax a bit and not overtrade or over leverage your account? If this sounds familiar then you have two options: Save up until you have the funds to put on meaningful trades Convince yourself that learning the process of good trading is more important than the profits You may want to consider doing both.
But I will say that number two above is paramount. Too many traders come into this business obsessed over making a lot of money. The problem is they ignore learning the process first. That process involves things like learning support and resistance, trend analysis, favorable risk to reward ratios, etc.
The same concept applies to trading Forex or any other market. Overtrading and overleveraging are perhaps the two greatest sins in the Forex market.
Demo Account Registration
It's All About the Money The only thing that separates a demo account from a live account is the money. Everything else is the same. And what does money tend to do? It triggers emotional responses. Learn to troubleshoot this problem like you would any other dilemma. Eliminate the irrelevant and think through the problem.
I cut profitable trades too early and let losses run in my live account. The method above is called the 5 Whys.
How to Make Real Money with a Forex Demo Account
Once you have this information, you can address the problem head on. If not, you should take a step back and reevaluate your risk threshold.
Plan your trade and trade your plan. To trade based on logic rather than emotions, you need to have a plan before risking any capital. The best defense against emotional trading is to keep risk small and always have a plan. To do that, I need your help. Leave a Comment:.