When it comes to forex CFDs trading, there are many trading platforms that would allow you to trade with them but you have to create an account to start trading. However, it is important to note that there are different types of accounts.
This accounts can be classified as live or demo accounts. The purpose of demo accounts is to allow new traders to learn the art of trading forex CFDs without the risk of losing their funds.
Trading with the demo account initially is certainly a good option and strategy but the problems lies in the fact that most people tend to stay on demo accounts for far too long. However, most people stay for long on trading demo accounts, mastering and acquiring all the knowledge required for real time trading but when they start trading using a real account, they start losing their money.
The reality is that knowing the nitty-gritty of the market which includes the chart and other relevant knowledge is important before venturing into a live account. However, if you do not get in and get your hands full, you may never get the required skills. Note that they are very good educators but at the same time, the work on simulation and not real life. It is important to note that you may never get to have the perfect scenario when trading in the real world.
A good example is that prices, stop out levels and even order fills are very different when it comes to demo account. But understand that one of the reasons why you find traders doing so well when using a demo account for trade is that there is no risk involved and as such emotion is kept out of the way.
How should you get started on live account? This should be the first question on your mind. However, to answer that, the best way is to start small by trading with small amount and gradually get to bigger ones.
Note that putting all your funds at first start is risky as there are still high chances of losing it no matter how good your demo account trading was.
Do not forget that making losses is also part of trading as you cannot really avoid it. Therefore, following a solid trading strategy is the way to go. For new starters, the price action method seems to be the best but it does not stop you from using other methods as long as you have gotten a grip and mastered the method.
WB2016043 Publisted 04/01/17