There are many traders in the world who think they can practice in their demo accounts and become a master of the trade. They are wrong because you need to know how to manage the pressure when you are trading with real money. There are many misconceptions among traders and one of them is learning to trade with paper money. This is the money that you find in your demo account. This article will tell you why you cannot learn to trade with the paper money.
The professional traders are rational risk takers. They never trade the market without analyzing the market trend. There are many things you need to consider before you trade the market with real money. Some of you might think trading is all about taking making a big investment. Things have changed a lot over the past years since brokers like Rakuten is offering high leverage trading accounts to their retail clients. If you can trade the market with managed risk, you can easily use the leverage to execute big lot trades.
Before you consider trading as your fulltime profession make sure you have access to the best Forex broker in Australia. The rookie traders often try to trade the market with an unregulated broker to cut down their trading cost. But this doesn’t really help in the long run. Without having precise knowledge and proper skills, you are bound to lose money.
One of the important things of traders is emotions. When you are trading in Forex, you need to know how to control your emotions and keep the emotion within you. They will try to overwhelm you and make you angry and also confuse but you should try to keep them under control. The trading experience in demo account does not give you this privilege. You do not worry because you know your investment is safe. What you do is make some wonderful trades that are not replicated in the live account. Do not think you have lost the magic but because you were trading without emotions, you were taking the best possible decisions out of few and made the right choice.
You were not going after the losses and without your understanding, you made some perfect professional trades. When you trade in live accounts, you miss the part of managing your emotions and you get confused. Trade with real money and keep the position size as smaller as possible. It will keep your investment safe and you can place more trades. If you do not trade with real money, you will never get know what it feels like to lose the money. This money will push you and you will achieve goals that you think was not possible.
We do not taste a food by only eating but also by the smell and look of it. The sense of using the real money will make your brain alert. You will not take trades without analyzes and it will also make you more patient in the industry. Many traders did well in demo trades but when they trade live, they lost the track. It is because they are now driven by real money. After making your first profit, you will want to earn more and this is how you will become better on Forex. You can trade as much as you want in the demo account but you will never get the feeling of live trading.
You need to step outside of your world to know how things work. As you are trading with real money, you need to know how to manage funds in volatility. This will make you professional and you will become better at managing your money in Forex.