When You Are Ready to Move From Demo to Real Trading?

by Mike on July 9, 2019

When You Are Ready to Move From Demo to Real Trading?

If you believe that smart people make mistakes and intelligent people learn from other people’s mistakes, this way of thinking could be very helpful in your trading journey. We must put it clear from the start that trading is a business and like any other activity, requires a particular set of skills that are built with time.

The first phases of the learning process might seem boring for most of the beginners, but skipping some steps in the process will haunt your later when you will need to make live trading decisions and put your own money at stake.

Signs that you can move to a real account

Understanding how markets work is the first key factor which should be taken into account before switching to a real account. Do you understand technical or fundamental analysis? How monetary policy could impact a particular market? What factors could have an influence on the markets and how can you anticipate future events? If you don’t have the answer to these questions, it means you should keep studying.

Secondly, you need a trading strategy and most importantly, you need to create a habit of constantly executing it to the tea. Consistency and discipline are the top problems of beginning traders and without them, you won’t be able to have a stable performance. Until you don’t see on a demo account that you can follow your strategy, it won’t be suitable to move to a real account, where there will be a lot of emotions influencing your decisions.

Traders generally focus on the technical aspects of trading, but it is your psychology that will ultimately determine your long-term success. Until you achieve emotional balance and execute your game plan 100%, you need to keep practicing on a demo account. Luckily, brokers like easyMarkets and Oanda are offering free demo accounts, so you don’t need to hurry.

Don’t fall into the trap of thinking that trading is easy and you will be able to make money fast, without having to go through a serious learning process. Trading is a skill-based activity and like any other profession, it takes time to learn. Switching to a real account will be an important step in your trading journey, but if you skip some initial steps, it will prove to be painful. The bottom line is that losses are inevitable in trading and it will be your ability to generate returns in the long run that could make you a good trader.

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