As a beginner in trading, it’s essential to practice on a demo account first when learning a new trading method or exploring a new market. In today’s article, I’ll discuss the importance of demo trading and why you should incorporate it into your trading journey.
Eliminate Emotions and Focus on the Trading Process
Trading on a demo account first allows you to eliminate emotions like greed and fear, helping you focus on the trading process. It also helps you understand whether your new trading strategy works, enabling you to make mistakes, learn from them, refine your strategy, and do all this without risking real money.
Develop Confidence in Your Trading Strategy
Demo trading helps you develop confidence in your trading strategy. Many new traders often jump from one strategy to another due to a lack of confidence. Trading is a marathon, and you shouldn’t give up on a strategy just because it hasn’t worked out over a short period.
My Personal Experience with Demo Trading
I started trading in 2013, and even though I’ve been trading live for so long, I still use my demo account to test new strategies and markets. Once I’ve mastered trading them consistently on a demo account, I then start trading them in my live account. Demo trading has been one of the keys to my trading success.
In conclusion, while you may not make real money in a demo account, it will help you make sustainable returns in the future. Save your trading capital for when you master your trading strategy and become a confident trader.
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