Every novice trader understands that trading in the forex market is associated with risks, so no one starts to trade immediately on a real account. Brokers also understand that customers need to be given the opportunity to try out the trading platform, to test their abilities in trading with a particular instrument. In addition, if a trader is just beginning his activities, he must get used to the market, learn to analyze the situation, use indicators, and so on.
Most brokerage companies that work in the international foreign exchange market offer the opportunity to open a free demo account. This does not oblige the trader to start real trading in the future in this company. This is a trial version. Those who only get acquainted with the currency market can try their hand, someone, perhaps, wants to test another trading platform or trade with a new tool. Also, a demo account is useful for traders who want to change their trading strategy, or even compare work with another broker.
Why is demo account is free
Agree, in our time to get something for free means or get a trial version, or the product will be frankly of poor quality. In the case of a broker, this is just a test version. On a real account, you make money to start a real trade. There, the broker is already connected to work through the support staff, and operates with your money. And while you are just learning, it makes no sense to make a demo account paid. And the broker understands that if you do not learn to trade at all, or with specific tools or on specific terms, you will not work with it.
Trading on the demo account develops the financial thinking of the trader, prepares for real work, when good money will be at stake. Plus, no one limits the trial period for trader. You do not need to enter the market if you are not sure that you are ready to control your investments and financial flows. Hurrying, you run the risk of losing honestly earned money.
The importance of trading strategy for a successful trader
Trade will be successful only if you stick to a specific strategy. In each manual for a beginner trader it is written that in trade there should be no any feelings. Do not succumb to impulses, do unverified moves, go all-in. Only a cold calculation should rule the mind of a successful trader. Only a proven strategy, tested on a demo account for several months, will lead you to success.
Why do many choose advisers that can be configured for a certain algorithm, and the robot will do the work of the trader while he is resting calmly? Of course, firstly, it minimizes the need for the presence of a person in the workplace, and secondly, the automated system will do its work impartially, and the risk of losing all money due to a rush of the soul will also be reduced to zero.
Yes, and do not forget about patience. The forex market is a very changeable environment, so before you make specific conclusions about opening or closing a deal, entering the market or making another deposit, wait at least a week.