Forex Demo OR Live Account? Which One Is Better For You?

Without practice, there is nothing you can do to achieve perfection in any stream. The same is applicable for forex trading as well. Most of the traders deposit their capitals with the forex brokers hoping that their investment might generate profit overnight. However, soon you might realize that trading in forex isn’t easy. Unless you practice properly, trading cannot be something that gets you to benefit. Even though you are new to the field of trading or have been trading for quite some time, practice never stops.

Forex Demo OR Live Account?

Which Is Better: Demo or Real (Live) Accounts?

If you are someone who has traded in both demo as well as live accounts, it is hard not to notice the differences between these two. When you trade on the demo account, you can notice that it can be executed without any kind of problems. However, when you initiate your trade with live accounts, you might see that your orders can be delayed or not filled sometimes. This is because of the vast difference in the trading environment where the demo account simply prepares you for the real-time market in live trading accounts.

Here are some of the key differences between the demo and real trading account:

1. No Re-Quoting In the Demo

Demo accounts tend to offer a controlled environment to help people practice way before indulging in a real-time trade scenario. However, when you trade in a demo account, you don't get re-quoted but in the real account you have to sustain the re-quotes and have to accept it with no option as the trading scenario in real time is harder than demo account environment.

2. Tighter Spreads In the Demo

When you compare the spreads in a demo account with the live trading account, you can easily find that the difference is close to 1 pip. This difference is rather evident for someone who has been trading with the help of spread brokers with variability. This is where market conditions along with liquidity providers decide spreads.

3. Perfect Stop Loss Execution in the Demo

When you trade in the demo account, every order for stop loss is executed perfectly. However, when you take a look at the traders in real accounts, you can easily notice the array of complaints related to the brokers placing the stop loss way higher than you wanted to lead to a substantial loss that is way beyond your estimation.

Demo accounts are often beneficial when it comes to opting for a trading environment that is free from any kind of risk. It helps the traders get accustomed to the market space and understand the highs and lows of the forex market. Even though the commissions and spreads differ from the live account, you get accustomed to what may or may not affect your trade.

If not completely, it closely mimics a real-time trading environment in the demo account. Additionally, the demo accounts also allow you the facility to test trading conditions that are provided by forex brokers. One can easily move towards the live account after practicing properly in free forex demo account to bring down the loss from an unexpected trading scenario.

Reasons Why A Trader Should Train His Mind Before Trading In Forex

If you are updated with the latest news in the currency exchange market, you will be aware of the fact that Forex market has bagged the tag of being the largest finance based market across the globe in the current scenario. Anyone can practice trade in the forex market. However, these trading scenarios are always paired with a certain degree of risks. You might have heard the industry experts stating the fact that entering the crypto market must be paired with a lot of training and understanding along with psychological and mental preparations.

There is no hard and fast rule when it comes to mind training for the scenario of the trading platform. However, certain rules and regulations apply to all. Online forex trading can be made more efficient and fruitful once you know what you are doing and here are some of the reasons to train your mind when initiating a trade sequence in the forex market.

1. Release the Pressure

This might be no secret, but yes, you need to let go off all the extra stress that you carry along with you. Always remember the fact that you can take better decisions when you are properly relaxed. You can trade with high professionalism once you get hold of your thought process without letting the weak and fragile human tendencies controlling you while you ride the ship that is bound to drown with the extra load.

2. Refrain from Overtrading

Once you have complete control over the emotions you carry inside you, the greed for more profit won’t be the guiding light when it comes to trading. It so happens that traders who jump into this platform with the sole motive of trading for-profits tend to overtrade which might lead to substantial losses leading to an emotional and financial wreck.

3. Boost Your Motivation

It is obvious that motivation is an important asset when scaling through the terrains of the forex market. A direct relation between success and high motivation has always been proven each time a trader bags a winning strike. When you have complete control of the emotions you carry with you, the losses that you see in the forex platform will never bring you down. This will allow you and your mind ample space to trade with a wise decision. Unless and until emotions are thrown out from the decision-making process, you can never think of perfect trading strategies.

4. Recognize the Spammers

Make sure you study properly about the forex platform you are trading in. With zero knowledge of the trading scenario, you might come across spammers that might be your cause of failure. Unless you immobilize the emotions in your heart and head, you might be appropriately moved by the fake promises of profit leading to a false deal with the traders. Having ample knowledge about the current platform and market you are about to trade in will allow you the chance to separate spammers from real services.

How Patience Is A Bridge To Success When It Comes To Forex Trading?

Understanding the way forex market works can be a daunting task at first. However, when you start with the initiation of trade, it is important to know that trading in the forex market requires a lot of patience. You might not see the results instantly. However, keeping your patience for a long-term allows significant improvement in the trading scenario. While eagerness can pop in from time to time when it comes to making some quick bucks with forex trade, you need to keep in mind that your probability of making a winning streak can be significantly lowered.

Trading Opportunities

In any trading scenario, you will get plenty of opportunities to trade. The concern here isn’t looking for a trading opportunity, rather opting for a trading scenario that fits in your pocket. You can come across numerous opportunities, but when trading, you need to pick the one that can bring you better profits while lowering down any chances of loss.

Use of forex indicators paired with financial graphs can act as a beneficial option when practicing patience in the forex market. Make sure you take your time for properly reading through the graphs while interpreting the indicators that provide the traders with an interval in between to allow proper time to relax and decide. Patience allows you to take the decisions that can help in placements that are helpful for better trade and higher profit percentage.

Patience is something you need to stick to even after placement of the trade. For example, your trade moves towards a direction that gets you a small profit for the time being. Now, you need to decide whether you will opt for a sale or trade for a higher stake. This is a decision that should be taken with patience. Any decision you opt for can change the whole scenario.

 

Failure in Past

Another aspect of patience in trading comes during the scenario when you have to trade after going through failure. An unseen failure, especially the ones where you haven’t expected the scenario to take a sudden turn can wreck you emotionally.

When going through an emotional tumult, it can be tough to take a well-analyzed decision. This is why you need to have patience and analyze the prospects that led to your failure. It can be fatal for your trading scenario when you invest only with the expectation of achieving a positive result.

Clear your mind from any unrealistic expectations. If you reach a trade that turns into profit, don’t get too overconfident for your next one. Always chase your trading scenarios after careful analysis of all the prospects that can lead to success or failure. Never skip any step in a hurry when seeking a positive trading result.

Work through one step at a time rather than going at it all in a single go. The hasty attitude in the forex trading scenario always leads to failure with no clear plan for the proper business.

Top 5 Forex Trading Tips for Novice Traders

Forex trading is a vast domain that requires one to focus, learn, and practice before going ahead of oneself. You might be bombarded with information that is too much to handle especially when you are new to the territory. You must take it slow while learning at the initial stage. Check all the tips properly from the professionals who are well-experienced but don’t follow them blindly.

As a trader, you need to understand that there are three main factors which you need to understand as a novice traders which are:

1. Technical
2. Fundamentals
3. Sentiments 

Fundamentals are the leader and technical is the follower of it. Also, Sentiments has a huge impact on individuals which controls the emotions and greed factor of a trader. Understand all of them carefully with your experience and you’ll be soon a pro trader yourself.

Here are some of the trading tips that can help you as a novice trader to excel in the Forex trading sector:

1. Start from Basics

 

The first mistake committed by any new trader is to jump right to trading without having any solid knowledge of the market. When it comes to forex market, you have to take sufficient time in order to learn about the trading sector, its ups and downs along with several other jargons that are important. Starting trade initiation when you don’t even know what platform you are using or the broker service you require will only bring you down when you get into live trading. So before you dive in your live account, learn and adapt to the essentials.

2. Stick To Your Trading Strategy

 

New traders often fluctuate between different strategies. When it comes to Forex, there is no fix solution to it but when you stick to a single plan, chances are higher that you might do better each time with small modifications to the existing plan. If you are jumping from one strategy to another in search of methods that can actually work, it may cause you a substantial loss as everyone is trading as per their budget and experience.

3. Keep Calm

 

There might be a time when the trade action moves against your strategy. But this doesn’t call for a moment to panic. Instead of freaking out, you need to address the issue by assessing what went wrong and how you can improve your existing strategy. It is normal for a trade to move against you. Implementation of stop-loss can help you with the same by limiting your loss.

4. Be Realistic

 

This might be the toughest thing for any new trader to achieve in Forex market. With the start of a new phase in life, unrealistic aims and dreams are common and normal in human nature. However, it is essential that you should not let your emotional judgment stand in the way while you are investing a lot in trading. Forex doesn’t always get you rich. It is just like a job for which you have to work your way through.

5. Don’t Overdo It 

You might think that trading a lot might increase your chances to win but it is nothing but a fool’s errand. With emotional mistakes on high, you might lose more than you aim to make. Walk one step at a time and try not to jump.

Bonus Tip:

 

When it comes to online forex trading, you should go with a trusted and licensed forex broker who can help you throughout your trading journey.