During the last year I have read
several articles describing the use of demo accounts. One of the disadvantages
against demo accounts is that it is not real money and the trader has nothing
to lose. If he instead opens a real account he will feel how it is to trade
with real money. The trader will feel how his emotion will start to interfere with
his decision.
Just to illustrate the thoughts in
the articles I found a YouTube video where a fellow is telling about the
disadvantages using a demo account.
Emotion in a trade is bad for the
decision a trader makes and should be avoided. It could be done through trading
rules. The purpose is to lower risk in a trade. The topic is further described
in the article “Trading Forex Online? What Is Risk Management and Risk - RewardRatio? “
It is also possible to avoid emotion
in a trade through visualization. The purpose is to get comfortable with the
trading rules and learn to trust them. The topic is further described in the
articles “ Online Trading? How Visualization Techniques Can Improve Skills To EnterA Trade “ and “Forex Online Trading? How toImprove Your Forex Trading With Visualization Techniques“
In the video the fellow talked about
opening a real account and start trading with a minimum amount and the risk
would be minimized. Another solution is finding a trading platform that offers a sign up bonus and start trading with the bonus. In the article “Trading ForexOnline? Trade Smaller and Make More Money” is described how a smaller amounts
could generate a better profit margin than larger amounts.
