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A demo Forex account and real investment - what are the differences?

A demo Forex account and real investment - what are the differences?

Virtual money in the account

 

Often the trader sets the amount of capital that comes into his head. It trades not your money, so there are no worries in case of loss. But, if trade is based on a real account, there loss for each transaction, cause a real depletion of capital that is lost forever. These situations are painful, frustrating, sometimes investors panic. The player could cope with such circumstances, he must have a strong mentality that will allow you to control your emotions, and will not prevent further errors.

 

Strong disappointment

 

This point has already been discussed above, but it again. Many people are unable to cope with daily failures. Defeat on the Forex market properly recorded in the calendar on a regular basis. Every aspiring investor needs to know about it. On a demo account failure has tangible effects on the real it leads to major losses.

 

Fatal desire to act immediately

 

The rush and emotions are not very good at giving advice. Not having a real account, the investor experiences an irresistible urge to act quickly, so he, without thinking, tries to open the next position. This action is fatal, because it can increase the loss and to prolong the disappointment. Acting on a demo account, this is not necessary, and the player manages to calmly analyze what happened.

 


There is no consistency in action

 

Even if the investor develops an effective strategy, trade on a real account does not implement it consistently. Emotions possess, and traders do not adhere to their previous assumptions. These situations are rare on a demo account. Players want to see how their strategy and if they are effective. This is because the emotional level is relatively small, and the perceived lack of real consequences soothing.

 

Reset account

 

Gaining experience through training account, the player can remove it and re-open. Like a computer game where you run, for example, "three lives". However, the real game in the currency market means the inability to return to its original state. These are just a few of the differences between the demo account and the real. Before you begin Forex trading is to get acquainted with investment platforms and choose the most appropriate.

 

You should also pay attention to the training and courses that can help you to learn the secrets of investing in the foreign exchange market and to offer many tactics on how to cope with their emotions.

03.08.2020
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