The Forex market is undoubtedly the most attractive market in the world, with a high-profit potential. However, if you are just starting to engage in forex trading activity or just planning to do it, then absolutely must learn how to transact using a Forex Demo account. Most Forex brokers offer free demo accounts using the MetaTrader 4 platform.
Once you open a Demo account, you must set up enough time to study and prepare for live trading. If you're not sure when to start, here we'll give you the most important things you need to know.
Learn the trading platform features: Indicators and graphs
This is an important step but unfortunately is often overlooked by beginning traders who start trading without having the time to familiarize themselves with the features of the trading platform. Do not be one of them! Learn as much as you can about the trading platform you will be using. In the MetaTrader 4 platform, the main features you need to understand and use are indicators, how to modify graphics, how to read terminal windows that have information about your trading activities, account history, alerts, and many other useful features. Provide enough time to understand the trading platform and its features, so you can use it to make a profit.Test all orders to transact
Use your time to test all trading rules. Do not hesitate to test, for example: Buy Limit, Sell Limit, Buy Stop, Sell Stop, Take Profit and Stop Loss. The last two commands are very useful and most likely you will use in all trades when you start trading with a Live Account, that is when you set Take Profit and Stop Loss orders.Exploration of all currency pairs to be traded
When trading on a Demo account, you are very easy to lose focus by opening too many positions. The wise thing to do is to keep concentrating on one or two pairs of currencies, such as EUR / USD, and try to master it. If you feel that a particular instrument is not suitable for your trading style, move to another currency pair. You can also try some other assets, such as CFDs, gold, and oil, and see how well you can transact. The important thing is to focus on some assets and follow the main market news that affects price movements.Select the correct lot amount
Because of the leverage, the larger the lot you use, the higher your profits and the potential losses to be gained. Beginner traders are generally encouraged to use smaller lot sizes because the risk will also be smaller. The right lot size is an important part of risk management and it should not be ignored.Master Your Emotions
The use of Demo Accounts is very important because you can engage in virtual money. Once you start trading with a Live Account, with your own money, you will see that emotions will sometimes interfere with your trading. Feelings of anger, guilt, fear or greed can be prevented by you by applying a sound investment strategy.
Perseverance, patience, and common sense are qualities that will make you a successful Forex trader.