People always want to become good at trading without putting in any effort. Just by analyzing the losers, we can say, the majority of traders don’t have the required basic knowledge of trading. They are trying their luck with some super aggressive trading method. One of the reasons why people lose money is because of a lack of experience. You might think you can’t gain enough experience without losing money. But this is so wrong. You can gain enough experience in the demo platform. So, how long should you demo trade for? Read this article and you will get the answer you want.
Learn the basics
Very few people give importance to the basic foundations. People are always looking to create a robust trading method without doing hard work. They rely on the complex market data to take trades even though they don’t even know how to find the support and resistance level. But if you do the math, you will notice it is a very easy task. You should be sticking to the demo account as long as it takes to know the basics. Without learning the basics, you should never try to trade in the real market. If you do so, you will blow up your account and lose a significant portion of your capital.
Know about the market dynamics
Learning about the market dynamics is the most essential part to become a successful trader in the Forex market. People who have years of experience always embrace the losses since they know about the market dynamics. They are not looking for a big profit since they know taking conservative trades is the best way to become a top-class trader in the Forex market. You may have a huge amount of money but this should not push you to trade with real money. Open a demo account with a top broker like Saxo and stick to it unless you know how to assess the market dynamics.
Development of a new trading system
You need to develop a unique trading system to become a world-class trader. If you don’t trade with a perfect trading system, it will be very hard to overcome the challenges and you will be losing money most of the time. For the safety of your trading capital, you should focus on the development phase of your new trading system. It should be done in the demo environment. People who try to create the trading system in the real market lose money most of the time as they don’t have any knowledge about market dynamics. So, stick to the demo environment as long as you want but make sure you create the trading method in the practice trading account. You must feel confident in your new trading system before you switch to the new edge with real money.
Focus on your confidence level
You should gain confidence by using the demo account. Never try to trade with real money unless you have the confidence to trade with real money. People usually get confidence after demo trading the market for six months. Some of you might say, you have the confidence to trade with real money right after trading the demo account for a few days. You are saying it because you don’t even know how trading business works. The minimum period for using the demo account is 3 months. If you start trading with real money before that, you will be losing most of the trades. For the safety of the trading capital, you should be focusing on the long term market dynamics and this should allow you to take the trade in a controlled way. When you feel confident in the demo performance, you can trade with real money and start changing your life. But remember, trading is just your business. So be prepared to lose money in the real market.