Forex is the biggest investment market in the world. If you look at this market, you will find that a lot of people grace and invest their money in Forex. This market has become so popular among the people that many people are investing their money in Forex and making it a full-time profession. When Forex trading first started, it was only limited to wealthy people and big banks of the world. It was then opened and it has seen a boom in the number of traders. Many people started to invest in Forex and with the help of the internet, no physical presence was necessary for Forex. This made it the biggest cash market in the world with trillions of dollars. Al the stock markets of the world could not compare with Forex even when they are together. Many people have got this idea that as this a very large market, they do not need to practice their strategy. They will place their trade in Forex and they will start to make the profit. This does not happen to people who trade the market without any practice. Though this market has the largest number of traders in the world than any other markets, not all of them are making the profit. Only 5 percent of people are lucky to make the profit in Forex and if you want to be one of them, you have to practice your trading.
Demo trade the market
All the expert traders always suggest the new traders start with a demo account. The retail traders jump into the trading world without understanding the associated risk in trading. They simply start trading the market based on their gut feelings. It’s true that they will often get big winners based on the emotional approach in trading but considering the longer time frame scenario, they are running their trading career. Being a new trader you need to understand the fact that 95% of the traders are losing money in Forex. So it’s highly unlikely that you will be able to make money from the very beginning of your trading career.
Having access to the professional online trading account will not make you rich person. You have to learn how to trade this market with the high level of precision. Being a new trader learn about the advance trade management system so that you can easily deal with your losing trades. If possible, demo trades the market for the first few months so that you can get a clear overview of the nature of this market. Try to develop a simple but effective trading system by trading the market in a demo environment.
It polishes your techniques
You may think why you need to practice in Forex. This market has given lots of opportunities to the traders to make profits. You are given demo accounts to make your profits and you do not need to trade the market for practice. You can start trading in your live accounts and profit will come to you. These type of concepts may work in dreams but they do not work in Forex trading. You have to polish your techniques in Forex and the only way to do that is by practicing your trades in demo accounts. A practice is not only placing trades in markets but you also have to set what should be your position size, how leverage if you are going to take and if you should set stop-loss in the trades if the market is going to be volatile. This market has no second chance and if you lost your money, it is lost forever.
Makes you acquainted with the volatility
The Forex market is very volatile and trends can change anytime. When you practice trading in Forex, you will develop your risks to reward ratios for how to save your money from this volatility. Without practice, it is not possible.