5 Ways to Use a Forex Demo Account More Realistically

Opening a Forex account is not at all difficult, but that does not make you a Forex trader. If you don’t know how to take advantage of a Forex account to the maximum, it is highly unlikely that it will lead you anywhere. So, for those who are just entering the Forex market, and learning the ins and outs of trade, a real Forex account is not their stop. What they need is a Forex demo account where they can practice trading before they start off with the real thing.

There are several benefits of starting off on your road to trading with your IMMFX demo Forex account, and since it is free, there is no reason why you should not try your skills here first. This virtual account allows beginners to learn to trade in an environment exactly like the real trading market. The only difference is that the money you use is virtual, which protects you against any initial losses you might incur due to your inexperience.

The more you use this virtual demo Forex account, the more experience you can have regarding the strategies used in the Forex trading market. However, there is one major downside to demo Forex accounts; they can make you lose touch with the real value of money. Since the loss of virtual money does not dent your finances, it starts becoming inconsequential. Incurring the same loss in real trade market can often leave you broke.

So, here are some ways you can use your Forex demo account in a more realistic and practical manner to ensure that you keep a check on reality:

1. Treat the Money as Real

The very first thing to do is to treat the money involved seriously. Whether you make a profit or a loss, find the value of what it means to your bank account so that you can understand how, if the situation was real, it could have affected your life. Attach rewards or restrictions to your success and failures to realize their importance.

2. Play with the Right Amount

Often, the starting amount you get to trade in a demo Forex account is more than what you have in real life. Therefore, you should make sure that you get your starting amount adjusted to a sum near to what you can actually afford so that you can get a far more clear idea of your profits and losses. You can ask a broker to adjust the amount of your account accordingly.

3. Make a Journal

In order to remember all that you learn from your demo Forex account, it is very important that you keep a record of it. Make a journal that clearly states your goals, and write down strategies you made and the results you got when you implemented them. This way you can keep a track of your performance and analyze practices that play a part in leading you to profit or loss repeatedly.

4. Try Several Leverage Ratios

In Forex trading, there are several leveraging options available to you that can have a huge impact on your finances. Using a demo Forex account, make sure to try as much leveraging options as you can and record their results in your journal. Since you don’t stand at the risk of losing money, you can experiment as much as you want until you get a leveraging range best for you.

5. Take Note of Risks

Risk management is one of the most major things you have to learn about Forex trading and a Forex demo account is quite helpful in this regard. You can try different risk strategies when using this account by dividing the total of your amount into several mini-lots. This can help you learn more risk management strategies to safeguard you against losses when you start live trading.