What is Forex Demo Account
Forex Demo account is an opportunity where you can have virtual money to practice Forex Trading in real market. What you gain with a Forex Demo account is No risking your assets and practice until you become strong enough to face the real situation.
Almost all Forex Brokers around the world, are offering Forex Demo Accounts. When you selected a Forex Broker and get registering with him, you will be asked to select your account type Demo or Real (In some cases the real account is called as Live Account). As I know every Broker run their Demo accounts and Real Accounts separately in separate servers. You can see it if you are trading on MetaTrader platform, you will be prompted to select the appropriate server according to your account type. As an example guess you have an account with Forex Broker ROBOFOREX, then when you logging in to MetaTrader platform you will have to select between ROBOFOREX-Pro, ROBOFOREX-Fix or ROBOFOREX-Demo for the server.
Some new comers to Forex Industry neglect the importance of the Demo account since it does not have such a real financial value. They think No point of making millions in Demo account since we never would be able to withdraw that money. This is where lots of people starting drive their hardly earned money to hell. You will never earn a penny in Real Forex Market without having a strong practicing history. While Forex Guru's are making some unexpected losses occasionally, how could you be profitable?
Likewise almost every professional Forex Trader still maintaining their Forex Demo Accounts for testing purposes. When they get a new Strategy they will not apply it directly to their Real Account. they test it on their Demo Accounts for four to Six months before apply it on Live Accounts. Because you may see some strategies are very nice and profitable in short term, But your account will be vanished if you ran them for a long periods. Such Strategies, Robots and EA's are their. So be careful. That's the key of their success.
Another important thing people forget is their attitude about the Demo Account. Don't treat your Demo Account in a different way of you treating to your real account. You must think as it's also a your asset. You must really worry about the virtual money. What a funny?
Yes it is. If you don't care and don't worry about money in your demo account, You will never gain the advantages of Demo Trading. You will feel the difference once you deposit your own money to a Real Forex Account and start trading. You will be panic on each pip the chart going towards the opposite direction. How could you stay calm and quite while looking the market going opposite and loosing your real money?
Mental attitudes are very important if you want to be success in Forex Trading. As you risk too much money on one trade in Demo Account, can you really do that in your live account? You can't. Would you like to loss your hardly earned profit in hundreds of trades on behalf one wrong trade?
That's why you must treat your Demo Account as same as your own money and practice with real conditions. Demo Account is a gift for you. Never risk your real money without practicing enough time. You can have many tests on Demo accounts which you are not willing to do with your real money.
Finally, Practice hard as you can. Test new Strategies, Prepare your own Guideline and used to obey it. Trade with a good plan. Be a successful trader for long time.
