You will probably start Forex by opening a demo account, as most people do, and most likely you will then proceed to the real account.
Forex brokerage houses in the world and in our country provide us a very good opportunity. Before entering the market with our real money we try ourselves with virtual money; we can predict what we will gain and what we will lose. On the other hand, thanks to the demo accounts we learned Forex information, orders and analysis methods to apply, we can gain experience.
If everything goes well in the demo account, we switch to a real account. Many investors complain that their demo account success is unsustainable after the transition to the real account. Especially in the overseas forums I follow, I see a lot of messages in the style of um I was making thousands of dollars with virtual money, I can’t earn anymore ”. This is of course related to psychology. If you ask why, I would like to explain; brokerage institutions give us a certain amount of virtual money at the opening of the demo account (50,000 – 100,000 dollars), we can use this virtual money as we wish to trade or other orders can do without fear. At this stage we have no fear of losing money, because there is no real money! But the real account is that we can lose our own money. These possibilities and risks are intruding into our heads, obscuring. We can be uneasy when applying the transactions that we started to implement in demo account in real account in seconds. In fact, when we get stressed, we can ruin a sack of figs with the wrong decisions and burn the ships so that they will never return to the market.
So, how is the success and earnings actually achieved with the demo account?
There is a one-word answer to this question: strategy.
Passing the same paths in the past, Forex professionals agree that investors can only make a profit with the right strategy. Create your own strategy in your demo account before you get into the real account. You have strict and bound rules. For example, do not make transactions in your real account in demo accounts. Try to learn your rules and limits before they cross. Try everything you want in demo accounts, whatever you want to do, you will learn by applying it, but after a while, you should start creating your strategy and experiment with the strategy you created. So you know what you are doing and what you need to do in your transition from virtual to reality, you can make definite decisions.