Typically, you did very well in the demo account, but you began to lose your real money after switching to a live trading account. Now you are chasing experts and ask whether you can tell me what happened. And their most common answer is that you are still not ready to use a live trading account. This answer can disappoint many newcomers.
For most beginning traders, losing money at the start is a bitter reality. Some traders face financial losses immediately away, while others take longer. Still, practically every day, the trader goes through a phase where they seem to lose their way between demo and actual trading. So to minimize your substantial money loss, you should switch to a real trading account after observing the following signs:
You are making consistent profit on the demo account:
It’s not the same as making steady earnings and winning all of the time at real account. Losing is an inevitable feature of the ever-changing market conditions. So don’t beat yourself up if you’ve lost a deal or two this week. Instead, concentrate on improving your abilities in identifying high-probability setups with reasonable reward-to-risk ratios and devising techniques to assist you in limiting your losses while increasing your winnings.
Having best trading tools:
You should have some practical trading tools and know-how to use them. You’ll also have access to a trustworthy source where you can receive even more Forex market gadgets and signaling tools to help you stay on top of the game.
Effective trading strategies:
You must have built at least 3 to 4 effective trading strategies on your demo account. You should have adjusted it till it was regularly producing favorable outcomes.
Learning various Forex trading methods and trading programs is better to ensure that what you have now is the most excellent option.
Stay calm and positive:
Dont panic and stay calm when you are losing trades. If you do, you should reconsider investing your hard-earned money.
We all understand that keeping your calm while losing money is a difficult chore. That’s why making a comprehensive trading strategy and sticking to it is essential in trading. You have to focus on your steps and notice what you have changed in your trade that brings up loss. Dont make emotional decisions. Perhaps taking breaks is very important after losing. Take your time and think carefully.
Be comfortable with your broker:
Before you register a live account and start risking real money on your trades, you should be very familiar with your trading platform. You don’t want to realize you don’t know how to quit a transaction just as you’re ready to make it, do you?
Apart from that, you should be aware of slippage, and your broker’s standard pip spreads so you can account for them when placing orders. This is why we recommend that you practice with a demo account from the broker with whom you intend to register a genuine performance.
To switch from a demo account to a real trading account can be difficult, and a new trader should not expect to be highly successful right away. You must understand the trading platforms and how does forex trading works in South Africa. One of the secrets to effectively switching from a demo to a real account is to avoid the temptation to trade rapidly and instead take your time.