Demo Accounts

Posted by on Mar 25, 2014 in Featured, Learning to Trade?

Demo Accounts

Are you learning to trade? Demo accounts are a great way to get a feel for the way that the system works but my advice to you would be to limit the period of time that you use the account for.

I would personally advise that you only use the account for roughly a month. Of course if you are not feeling confident by all means continue using the demo account, however it’s important to be aware that when you trade in the market it will feel completely different.

There are a lot of different factors that will start to influence your decisions when you are trading with real money because with real money comes real emotions! While using a demo account, you will obviously be doing what you can to ensure that you make a profit from your days trading but if you do lose it is no real loss.

One of the most difficult factors of trading is keeping your emotions at bay and I believe that the only way to do this is through experience and by only investing money that you are prepared to lose. There is a very complex psychology behind trading in the market and the majority of it does come down to emotions. Avoid pitfalls by keeping tabs on traits such as arrogance and greed – I thoroughly believe that the market gives you warning signs (most of the time) before the rate is about to drop. Do the smart thing!

If you would like advice on demo accounts or keeping your emotions in check please don’t hesitate to get in touch. If you have any questions, please leave a comment or get in touch via Twitter @PlanBTrading.