Trading Demo Accounts, Truths and Lies – Lesson 4

There are many theories about the time that should be practice in demo and one of them could be to win consistently applying a good defined technique.

Every business has its beginning and in trading the beginning is the practice with an account Demo, all Brokers have a demo account to practice and to get hold of the platform before operating in real.

This method is one among many, but the common pattern is the acquisition of confidence to feel comfortable with the tool and the type of operation.

If you want to enter with some probability of success, it is absolutely It is necessary for the demo account to be taken as a real account, including simulating the amounts that we will invest in the future.

It is normal that you start winning and that you see trading as something simple, the demos aremade so that everything seems easy and in many cases, it is. It is normal to think and be analyse without pressure and the market direction is correct in many cases, but it is the psychological component that will make everything change when we put ourselves in an account real.

What is a Traiding DEMO for? For many things, but usually, to try all kinds of assets, tools, indicators, scripts and even robots. It is that moment when discover the full potential of the tool and when you see that trading is an activity of a lot of complexity.

It depends on each platform, but it is common for many of them to have endless applications some of which we will never know how to use or control. You have to just use and see only what we use since, there are many operators that have their workspaces very loaded with what they do not have clarity to operate with head.

You do not have to be the most sophisticated or use the most complex indicator because the traders  profitable are those that apply the simplest rules. We must have our space of trading as clean as possible and if we have drawn many lines and objects throughout the week is more than convenient to erase everything and start over. It always happens that in certain moments we have carried out analyses that have not been timely and because erase everything remains in the graph, that will make us go back into the mud with everyone the previous errors.

Even if you have real accounts, it does not hurt to have demo accounts, to try new ones things, is something that I always recommend since even having a method is very useful to read everything what you can about the advances and setbacks in trading techniques. Not for the fact that we are going to discover the Holy Grail, but because they are different visions that can make us expand our horizons. Even when it is already profitable any vision of a professional will contribute ideas and approaches.

Another benefit of the demos is free access to almost all world markets. Until a few years ago, access to demos was restricted due to not wanting to give real time over all the markets so the access was as much as one month. Today the Brokers have understood that the best way for potential operators to open an account is giving them the demo without restrictions.

The most normal thing in the world is that you need at least 3 months to master a tool and be able to take full advantage of it, also during a medium period will be tested how the broker responds before extreme volatilities such as the publication of macro data of high relevance.

The choice of your broker is how your partner’s choice must be a thorough study about all its virtues and defects. Few people investigates the origin, location and payment policies that are usually the more delicate issues when choosing.

There are brokers in which the demo account and the real one is two worlds, it will be necessary to have a lot beware of this type of Brokers. However, most serious brokers describe the operation and the execution of orders in demo and in real. For this reason, the broker demo must be tested with similar ones to see if the price is right and do not perform those fearsome spikes or needles that blow up all the stops.

It is not bad either, for example, to check the price with the regulated market in each case, For example, if we are trading Forex, we can see in the CME the real-time quote that is happening in Chicago (CME). Keep in mind that there is a difference about the price that we see in the CME and the price of the broker, even so, the movement is similar.

The fidelity to the price, the absence of broker drops, the execution and the tools have that be the first thing we value when choosing a house or another. In short, you must Try the largest number of demos to see which one best suits your needs and tastes.

Even so it is easy to get carried away by a colourful platform and operational simplicity, but as we have commented previously we must make a joint assessment of all the elements. Many people make the mistake of using the easiest without paying attention to the prices, execution, customer service etc. Many of them suffer their first ruin in this broker profile that what they do is simulate trading as if it were playing a game.

One way to be serious with demo accounts is to audit our own operations. This is done through various systems of signal providers in which each one connects its platform to a system and is measuring and publishing the results on the web so that it does not cheat itself.

Trading is an activity of great dedication and passion so that who is not be willing to devote a large part of your time to abstain.

Forex managed accountsTrading Demo Accounts, Truths and Lies – Lesson 4

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