Demo Account is one of the stages in the whole process of becoming a consistent and profitable trader. Demo accounts are designed to help us become the trader we want without risking a single peser. Demo accounts also help us to improve discipline and stay obedient to the rules of risk management that we make. And most importantly, demo trading will give us experience in different market conditions.
Well the question now is when do you know that you are really ready to trade using real account? Here is a checklist where you can be ready when you actually answer “YES” to all of the following questions without any hesitation.
Do you trade regularly for 6 months or more?
This is one of the most important questions. Forex market is always changing, which means that a system that is quite effective on the demo will not necessarily succeed at 6 months later. Got a lot of experience to measure the dynamics of the market is the most important thing to make your account stay afloat.
Have you tried with other trading styles?
There are so many styles and trading systems out there. Are you really positive about finding the one that really suits you? Make sure at least to try all types of trading ranging from scalping, day trading, mechanical trading, etc. You must continue to survive on one system no matter how many times you get a profit or loss in a row. It’s important to understand all the options available in the market and find the method you think is most suitable before deciding to trade using a real account.
Do the Winning Trade Outcomes outweigh the Losing Trade for the long term?
If you have not made a profit on demo trading, then do not try to trade with a real account. Because live trading really is like a wild animal. Once you lose money in real money, emotions usually affect our decisions when trading. This causes us to get worse results. Make sure you consistently generate pip in the demo account for a long period of time before you start trading with a real account. I myself have a habit to test a system for up to 6 months in demo account, before implementing it in real account.
Have you recorded and analyzed every trade you made to improve your trading performance?
This is something that traders usually underestimate. Most traders do not have a tight enough to keep a trading journal. Recording and analyzing every trade you make gives you a lot of benefits.
And we come to the most important question of all,
Have you developed a trading system that really works for you?
Without a solid and well-planned trading system, your account will quickly go to bankruptcy. The plan of your trading system will help you avoid bad trades.
If you are still confused about whether to post a position or not, and you still often feel emotional when faced with several losses, then you should return to trade in the demo account. No need to be embarrassed, to trade on demo accounts until you are fully prepared. All professional traders do the same.
And if you still do not have a planned trading system, accurate and reliable. please use the tools provided HOTEAFOREX this, because the tools of our expert advisors have some advanced features in determining the analysis and manage your finances safely.