OspreyFX: What It Takes To Jump From Demo to Live
*OspreyFX states that traders should research extensively before following any information given hereby. Any assumptions made in this article are not for traders to guide or alter their positions. Please read our Terms & Conditions and Risk Disclosure for more information.
- Understanding the reasons behind opening a Demo Account.
- How to know when you’re ready to jump into the real thing?
There is no right path for a success story in forex trading. Some traders will study for years before even opening an account in a broker. Others prefer to rely on a mentor, a more experienced figure that will show you the ropes. Furthermore, it will help you clear a path into the markets. There are always the ones that will jump quickly into the job, without much planning or developing a strategy, and try to go big or go home.
That is one of the many fascinating aspects of Forex trading: no matter which is your trading profile, experience, or budget, there will always be the possibility of success in your path. No single way is inherently bad or harder. The only thing you need is to learn when to seize the chances that come your way.
For traders still on Demo Accounts, this means learning when is the proper moment to make the jump from trials to Live markets and accounts.
What is the Point of a Demo Account?
The end goal of even opening a Demo Account is confusing for newcomers to the world of Forex. At a base level, a Demo Account exists so traders can engage the markets without risking money. By allowing new traders to have a feel of trading without the risks, Demos are perfect to introduce new people to the world of forex. But their applicabilities are far more diverse than that.
By creating an account without any harm to their funds, seasoned veterans can perform a series of tasks that would be too risky to be considered on a live account. Some of them are:
- Testing strategies: Planning ahead is a fundamental aspect of trading that is often overlooked by newbies. The perfect place to do so is by having a Demo Account. By running different game plans over a demo, OspreyFX clients can be prepared for whatever the markets throw at them.
- Getting a hold of FOMO: One of the biggest dangers to traders is the idea that the markets are thriving whenever they are not in it. Fear of Missing Out is not exclusive to traders, but it is especially troublesome when involves funds and assets. Rushing to be part of a trend can be harmful and using a Demo Account to vent out FOMO is a well-developed strategy.
- Controlling Emotions: Similar to FOMO, the psychological aspects of trading are much more important than most traders believe. The rush of wins can make a trader reckless, opening their portfolio to huge losses. On the other side of the balance, getting over a losing streak can be hard, and make traders too timid to go for the win. By using a demo, the fear of losing is virtually over.
Demo Accounts should not be considered a step in your trading journey, but rather a tool that can be useful even when you start reaping the rewards of your success in the markets.
Are you Ready to Move Out From a Demo Account?
Change is hard, but not impossible. No matter what other people say, deciding to invest in your Forex future by opening a Live Account should be an individual decision and not something you are peer-pressured onto it. The best way of making this decision is to be well-informed. Some questions to have in mind are the profitability of your demo account.
Are you earning more than spending on your test account? If so, it is an excellent sign that live markets are for you – there is no harm in being successful in your trades and getting money for your hard-earned pips.
No matter how successful your Demo Account is, you have to be prepared for losses. The secret of every successful trader is to keep a calm mind whenever things don’t go as planned. Don’t be too hard on yourself if you lose some, it is part of trading that one side will always be on the short end of the stick. Getting out of a negative mindset is important in a Demo Account, and more so on Live Accounts.
Do you have a well-developed and tested trading plan? The number one rule for traders is to test plans too much. The markets will change and evolve with time. It is part of the nature of plans to be changed should the occasion arises.
Paradoxically, if you spend too much time on planning in your Demo Account, by the time you feel comfortable jumping into the deep, your plans will be completely outdated. Finding that sweet spot to apply your strategy is fundamental.
Trail your path into the Forex Markets
OspreyFX is the perfect partner to help you on your trading journey, especially when making the transition from Demo to Live. We pride ourselves on offering our traders the right tools needed to ace the markets, traders can now trade with better insight using our Forex Calculators.