For a forex platform, there are usually at least 2 MT4 server groups: DEMO cashbackforexexness LIVE, LIVE forex rebate club the live operation, while DEMO is the demo board often have traders forexrebateclub the simulation will do very well, wait until the live operation but will lose money, so why is this? We talk to you today about foreign exchange demo cashbackforexbroker Text: 【Foreign exchange demo trading】: Foreign exchange demo trading refers to the use of foreign exchange trading software simulation account for risk-free foreign exchange trading due to are trading with simulated currency, so win or lose for traders are no loss and profit 【Foreign exchange demo trading and the difference between real trading】: nbsp;So what are the differences between forex demo and live trading? We answer this question from two angles, one from the perspective of the platform, and one from the perspective of specific trading 【Platform perspective】 1.The server is different The general platform server is divided into:DEMO (simulation server) REAL (real disk server) MT4 platform simulation server DEMO, real disk server LIVE 2. The spread is different Some platforms simulate the spread between the real disk and the disk is cashback forex the same, depending on the specific platform, most simulate the spread between the real disk and the disk is the same (generally simulate the disk without adding commission) 3, the data transmission speed is different Data transmission, the general simulation platform data transmission will be relatively slow a little But the difference is not much depending on the specific platform 4, the biggest difference in: the simulated account inside the money is fake 【specific trading perspective】 1. mindset We often hear a statement that the essence of trading is to trade human nature, so EA is all the rage from this point of view, the simulated disk because it is not the traders own funds, but virtual coins, so very bold, even if the loss will not be heartbroken; and in the real market, traders are relatively very cautious, do not dare to easily bet, once the loss, will produce feelings of remorse, regret, thus affecting their investment behavior 2. In the simulation board, if you hang a single transaction, is not in the buy and sell file display, because your money is virtual, and did not participate in the market to play, so your money will not have any impact on the market, on the contrary, if you hang a single in the real market, your real money involved in the market game, may be because of the counterparty or the conversion of the long and short situation, the original trend is likely to reverse because of your money (this is only theoretical) [the advantages and disadvantages of the simulation board] Pros: 1. For newcomers who do not understand the forex trading platform, the use of forex demo accounts can help novice forex investors quickly understand forex trading, familiar with the process of forex trading and find a platform suitable for them 2. And for traders who have been trading for some time, they can experience many days of market sentiment in a day and can be in a demo account Verify their own strategies and technical analysis, of course, this is also the primary verification, due to the mentality, or to go to the real market for operational verification Cons: 1. Neglect capital management, blind arrogance Forex demo accounts usually have a principal of $100,000 to $200,000 in the face of such a large amount of false currency, novice traders are prone to neglect capital The initial trading capital is too high to a large extent to play a role in encouraging and encouraging investors to take risks (after all, it is not their hard-earned money) but the reality is that many investors in opening real accounts are a few hundred dollars micro or mini accounts once the large heavy positions become a habit is difficult to correct 2. However, traders do not always comply with the plan they find a little movement in the market, immediately react accordingly, and no longer in accordance with the trading plan to perform in the demo account, they are not really rewarded or punished whether or not they comply with the trading plan [how to trade on a demo account] & nbsp nbsp; again to this topic, in fact, I feel quite difficult every time I talk about it, compare everyone has their own way of trading, talk about a few of my views on it 1. Choose the right amount of demo account The biggest difference between real and demo trading lies in the capital, although $100,000 for some tycoons just to play, but most investors in the beginning of trading Most of the deposits are between a few hundred to a few thousand dollars but for the average trader, the amount is best and later ready to open a real account when the plan into the amount of money, have a more realistic trading environment 2. Cultivate the right trading habits In the simulation trading, because it is not real money, so many times there will be some bad trading habits in the simulation trading To develop, for example: Avoid heavy trading (not that you can not heavy positions, just for most newcomers, heavy positions often mean burst positions), Avoid more frequent changes in the exchange rate of time (for newcomers, due to inexperience, encounter the market fluctuations like the non-farm payrolls, very allow impulsive thus loss, and such a market is not suitable for investors to summarize the volatility of the foreign exchange market trends ) Strict self-discipline If you have a trading plan, strictly in accordance with the plan to implement, in the conduct of foreign exchange trading, strict self-discipline is extremely necessary for most people, does not exclude that some people will have the sky is amazing, but for ordinary traders, from the long-term trading considerations, strict self-discipline is extremely necessary 3 summary of their own trading Demo trading is the best The best way to get to know forex trading, familiar with the trading place, and can be summarized in the simulation trading some trading skills (but maybe these skills are only applicable to the simulation plate), to find a suitable for their own profitable operation which is the model of your own trading system later
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