Why You Should Trade A Real Forex Account When Learning.
Demo Trading accounts are all the rage when we read beginner guides on how to trade.
Said guides also say that a real Forex account should be among your last steps. And that you should never put real money until you feel your learning curve has reached a suffcient level.
But, what if I told you that trading a real Forex account should be a part of your learning curve from very early on.
Well, read on and find out why.
- Why you should Avoid Demo Trading: It Removes Real Emotions.
The first thing that demo accounts advertise is how you can start trading with a $100,000 or 1million USD
The reason is that having such ridiculous amounts of money will make it seem disposable, for beginners see losses in numbers and not percentages. Not only that, but you also see larger profits.
The end result is that you lose both the fear and real emotion of losing real money, you also do not experience the real emotion of winning a trade.
It is virtually impossible to empathise with fictional numbers.
- Your Losses Must Be Felt, Not Just Seen.
The most important part you are missing is not really the joy of making real money, but the pain of losing it.
With that thought in mind, it should impose discipline when managing risk. Thats the general idea anyway.
It is easy to feel nothing for countless red numbers that do nothing for you r real trading capital; however, the moment your losses risk your career and your hard-earned cash, you feel everything.
The reasoning is as simple as that; like with the previous point, demo money does not replicate the real trading environment.
A real Forex account with a small deposit can minimise risk for your career while still translating into negligible losses.
- Master Your Emotions With A Real Forex Account.
Now, you need to feel everything related to trading with a real account; the result will be a stronger familiarity and knowledge of your own emotions and how your brain works.
More importantly your weakness will get drawn out sooner. This results is being able to concentrate on evolving them to cope better.
After a while experiencing the full range—from fear to ecstasy—with a real Forex account, you will find patterns in your reactions. With that information, you are then capable of monitoring the full range of mindsets that set you back, studying which emotional moments led to profits and which led to losses.
Mind set is so much more that strategy and set up. This alone is where so many traders fall short.
- Real Forex Accounts Force You To Embrace Risk Management.
There is a final reason for trading a real Forex account: developing and evolving psychology.
Feeling your losses will inevitably lead you to focus on minimising them, which starts molding your approach to a real one:
Trading Forex is about losing less instead of winning more.
You realise that the best method is not to trade more, but to manage your risk so that your loss percentage is less within the same number of trades. The end? A good risk management strategy that will boost your career from the get-go.
A real Forex account should accompany your studies, and we can help you with both! Just join us and open the door to all the knowledge you need to strengthen your Forex learning!