Forex Trading For Beginners, Introducing The process of Using Forex Demo Trading: If you are new to Forex, we recommend you try demo trading before starting the actual trading.
Most Forex companies have demo trades so you can experience the tools and trading screens you use in real trading.
For beginners to start trading smoothly, it is important to use this demo trade and become familiar with the realism and tools of actual trading.
This time, I will explain about demo trading and introduce Forex companies recommended for beginners.
What is demo trading for Forex Trading For Beginners
Demo trading is a service provided by many Forex companies that allows you to practice Forex trading. Anyone can use it for free.
Forex companies provide this service for those who do not want to take on the real trade suddenly or who have not decided on a trading style yet.
Benefits of demo trading
There are many benefits to doing a demo trade. First of all, you don’t trade with real money, so no matter how much you lose, you won’t lose.
Especially beginners can fail to trade and lose a lot of money. With demo trading, you can practice Forex trading without spending real money.
In the demo trade, the same screen as the actual trading screen is used. Since the exchange chart is also displayed in real-time, you can practice trading in almost the same situation as real trading.
The trading screen has various functions such as order screen, chart screen, technical indicators, etc., so it will be advantageous to familiarize yourself with the operation before starting the actual trading.
In the demo trade, the chart and trading screen are the same as the actual screen, so you can try the trading method you studied.
Besides, there are no fees for demo trading. Demo trading does not use your own money, so you can feel free to try different ordering methods and different trading methods.
Even if you fail in the demo trade, the experience of that failure will come to life when you do the actual Forex trading.
Disadvantages of demo trading
Demo trading has many advantages, but it is not without its disadvantages. First of all, I don’t spend my money, so I don’t feel nervous.
No matter how much you make a mistake, you won’t lose money, so you may end up trading lazily without thinking. In this case, even though you are trying to trade, you will get less.
Also, in Forex, the trading style differs greatly depending on the number of funds.
Even if you try and succeed under different conditions from the actual trade, if the conditions are different in production, the trading style may not work. Try to make a demo trade as close to the production as possible.
Difference between demo training and actual trading
There are many differences between demo trading and actual trading. Not only does the risk differ depending on whether you spend real money or not, but the mental burden also changes.
However, we cannot overlook commonalities such as the similar structure of trading tools and the use of actual exchange rates.
Real money is not used in demo trading, so there is no financial risk. The money you spend here is fictitious, just numbers.
Even if the result of the demo trade is positive, it cannot be drawn, but if it is negative, there is no need to pay the shortfall.
The mental burden is very different between the demo and the actual situation.
The demo uses virtual funds, but in real money transactions, you make money if you succeed, but you lose some or all of your assets if you fail.
There is mental pressure in real trading that you may lose real money. However, if you learn trading know-how through demo trading, you will be able to control the production pressure.
In demo trading, the trading tools and rates themselves are often the same as in reality.
For example, FX and everyone’s FX are announced on each official website that they can be used with the same trading tools and rates as the production.
The merit of demo trading is that you can get used to the atmosphere of Forex while suppressing financial and mental pressure. Please refer to the table below for the differences between production and demo trading.
How to start a demo trade
Click the button to go to the confirmation screen, check the contents, and if there are no mistakes, press the registration button to complete.
An email has been sent from the side and contains your login ID. Select the type of demo account on the official website, enter your login ID and password, and you’re ready to go.
What you need to open a demo account
You can start opening a demo trade account if you have an email address. The name does not have to be your real name like FX, and you can register if you have a password.
In the procedure for opening a real account, you must answer not only personal information such as your real name and address but also questions about money such as planned funds and investment purposes.
You will also need to upload your identity verification documents and My Number Card.
However, demo trading requires only a real email address, and there is no examination when applying for a real account. It will be easier to get started than real.
Points to try in demo trading
Let’s take a look at the points you want to try in the demo trade.
Understand the functions of the transaction screen
There are various functions on the Forex trading screen. In general, the trading screen of any Forex company is complicated with multiple buttons and numbers.
Before you start the actual transaction, it is important to understand the function of the transaction screen.
Try the ordering method
There are various ordering methods for Forex, so it is a good idea to practice demo trading.
Each company may have its ordering methods, such as market orders and limit/stop orders, so try various ordering methods before starting the actual transaction.
Try loss cut/profit-taking
“Loss cut” and “profit-taking” are important points to make a profit with Forex.
“Loss cut” is to settle a position with a loss so as not to increase the loss as much as possible. “Profit-taking” is to settle a position where you can secure some profit.
Both are difficult for beginners to judge the timing, so let’s try it thoroughly with a demo trade.
Try big wins and big losses
Experiences such as making big profits and making big losses, on the contrary, are also important. By experiencing a trade that loses a lot, you will be able to find out the reason for the big defeat and gain the experience of reflecting on it.
Points for beginners to check
Next, let’s check the points that beginners should check when conducting a demo trade.
Check firmly with a computer or smartphone
Many Forex companies provide demo trading with the same trading screens and tools as in production.
Make sure to check the operation method on both your computer and smartphone so that you will not be confused by the actual transaction.
The number of smartphone tools that are as good as those of PCs is increasing, so be sure to check not only the transaction screen of your PC but also the smartphone app.
Easy to read information
It is also important to check if the information is easy to see on the transaction screen. Beginners may be unfamiliar with the tool and may miss important information.
It’s a good idea to check before choosing a Forex company or before starting a real trade, such as whether the screen is easy for beginners to understand and whether the necessary information is included.
Ease of ordering
Multiple buttons are lined up on the Forex trading screen. If you are a beginner, you may have a hard time figuring out which button has what function.
If you are confused about an order in a production transaction, you may miss a trading opportunity.
It is a good idea to check the demo trade to see if even beginners can easily order and operate.
Try multiple demo trades
Forex tools vary from Forex company to Forex company. Each has its design, and there are good points and bad points.
To choose a Forex company that is easy to trade and suitable for your trading style, it is important to try multiple demo trades.
Demo trades are free, so it’s a good idea to try as many demo trades as you can before choosing a Forex company.
Demo trading is recommended for Forex beginners
Forex beginners are recommended to get used to trading by demo trading first.
Many Forex companies offer the same trading screens and tools as in production by demo trading.
It is important to check the tools etc. in an environment close to the production so that you will not be confused when you start Forex trading in the production.
Tools and transaction screens are different for each Forex company. Try the tools of each company in the demo trade and choose the Forex company that suits you.
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