Corporate News

11 Feb, 12:40

Practice Makes Better in Forex Trading

Forex Demo Account - Teletrade Forex trading provides vast profit opportunities, but it is definitely not a get-rich-quick scheme. Just like other investment models, it takes some time and skills to actually earn money. A colossal mistake that many newcomers make is open a live trading account and use real funds to begin trading, before they are really ready to do so. This is just a quick formula for losing their hard earned money. It is always advised to put a damper on your excitement and practice trading before placing real trades. The funds you save will be better leveraged, once you have obtained some experience and skills.

Forex trading is not the kind of endeavour that allows people to just jump into lightly. Even if you think you are adequately prepared, it seems to become more real once you actually engage your assets and send a real trade to the market. In order to gain some trading competence and make profit, practice is a one way street.

Forex Demo Account

You might probably wonder which the best way to get into Forex is, without risking any of your funds. The answer is simple; practice on a demo account! A Forex demo account is a practice account that is set up in the exact same way as a real trading account, with the exception that the money in the account is not real, but virtual. Placing a demo trade completely simulates the technical aspects of Forex trading, as the charts and trades are connected to the real market. The account allows novice or seasoned investors to test their trading skills and techniques in real market conditions, with a zero per cent risk and no commitments attached.

A Forex demo account can be just the thing you need to safely kickstart your trading career and you should take it as seriously as possible in order to get the most out of it. Having a target to work with will make you much more serious about it and enable you to learn the trading skills you need to become proficient in a much more timely and efficient way. The better your trading skills with monopoly money are, the better your skills and confidence will be when it comes to start making real money.

But what are the reasons that make practicing on a demo account so important?

Learn the trading platform

One of the main reasons why demo trading is so essential, is because you have to fully grasp the operation of the online trading platform before start trading for real. It is quite easy to make a mistake if you are not familiar with some of the tools and features of the platform. Investors that are new to the market rarely have a clear idea of how it functions, thus it is always wise to first test all the bells and whistles on the trading platform before attempting to place a trade. Aside from learning the technical aspects involved in trading, you may discover some ideas that will help you become more profitable, as many Forex trading platforms include a large array of tools to help you get the job done in the most effective manner.

Have a close look of real market conditions

It is very important for traders to prove themselves in a market simulation environment that they have the attributes needed to make money online. It is one thing to examine the charts and indicators, but you also need to get into the habit of feeling the market, as it is a unique living entity, providing new excitements every day. There is great value in practicing under real market conditions, so you can get a handle on how trades work and how financial instruments react when the market makes sharp moves in either direction.

Test Forex trading systems

One other particularly good use of a demo account is to test out Forex systems and trading strategies. If you have a good idea for a system or want to experiment with a new strategy and you want to see how it would work in real time, a demo account provides the best venue to do that, as it gives you the ability to test your ideas without risking a penny. Even if you are an experienced trader, you will still want to expand your list of techniques and strategies. It is, therefore, always recommended to take your time to work out the details and practice your ideas before start using real money.

Learn how to manage your funds

There are those who argue that they do not like to practice on demo accounts, because they do not like fake money. This is similar to the logic of fire drills. Let’s assume that you all had fire drills at your school when you were kids, despite the fact that there wasn’t a real fire. You may have made fun with your schoolmates during the drill and even moved slower knowing that there wasn’t a real fire out there. But what if a fire was about to burst out in reality, would you know what to do? Would you know where to go and the tempo you should walk in order to safely exit the building?

Well, this example demonstrates why you should practice on how to manage your funds. In order to begin trading for real you should learn how to effectively trade with margin, get accustomed with estimating profit and loss, assessing your risk reward ratios and be able to make the best decisions when the market moves against your position. When you practice trading, you can learn vital lessons about effectively managing your money and also discover your own trading idiosyncrasy.

Moving to real trading…

Once you have dedicated some time to practice your trading systems and you feel comfortable, you can consider opening a real trading account. You do not have to be worried about losing time in real trading, as the benefits derived from demo trading pay for themselves over time by enhancing your earnings.

Here, at TeleTrade, we offer completely free of charge demo accounts to get you started with your Forex and CFD trading, as well as localised customer support service to assist you with all your queries along the way.

29 Mar, 11:32

Dear TeleTrade Clients, Please view the following changes to trading sessions of the below CFD instrument on Monday, April 3, 2023, due to the end of Daylight Saving Time (DST) in Australia. Asset...

23 Mar, 13:30

Dear clients, Please be advised that a 2-for-1 stock split of Monster Beverage Corp (MNST.) is scheduled to take place at the end trading session on Monday, March 27, 2023. Trading on this symbol...

23 Mar, 09:01

Dear TeleTrade Clients, Please view the following changes to trading sessions of the below CFD instruments on Monday, March 27, 2023, due to the start of Daylight-Saving Time (DST) in Europe. Asset...

17 Mar, 06:41

Dear TeleTrade Clients, Please view the following changes to trading sessions of the below CFD instruments on March, 21, 2023, due to Vernal Equinox in Japan: Asset class Instrument Session...

23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.19% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2023 Teletrade-DJ International Consulting Ltd

This website is operated by Teletrade-DJ International Consulting Ltd, which is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11. Teletrade-DJ International Consulting Ltd is located at 88, Arch. Makarios Avenue, 2nd floor, Nicosia Cyprus.

The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.

Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.19% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Choose your language/location