Saturday, August 6, 2011

How Helpful Is Demo Currency Trading ? Forex Finance Review

Naturally, it is alluring to utilize a demo account in a very different way than we?d if we were handling real money. People regularly hop right into demo currency trading as though it were a game. Currency trading isn?t a game. So it?s very important not to tap out the leverage, open trades at random and play with 10 different currency pairs in demo.

I will quote http://www.forexmachines.com/reviews/pips-chaos/. The strain factor

However careful you are to make your demo fx trading seem as real as practicable there?s still a big difference which you cannot artificially recreate, and that is the impact of stress. Stress is a physical reaction to a situation where we think ourselves to be in danger. It kicks in for mental, emotional and financial dangers as well as physical perils. This can regularly lead to bad choices made in the heat of the moment. It is hard to stay calm in real trading and it is not a smart idea to try and create it artificially in demo, so all you can do to stop this becoming an issue is to start tiny when you do go live. Then increase your position or your risk continuously. If you act in this manner, demo FOREX trading can be a awfully helpful preparation for the real thing.

Source: http://www.localgovernmentfinancereview.org/how-helpful-is-demo-currency-trading/

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