Should You Avail a Demo Account in Forex Trading Or Go Live Trade?

Demo trading has always been under the scanner of many traders, and there is a tug-of-war between those who believe it is useful and those who think it is counter-productive. This factor can be broken down into simpler terms. Look at it this way - you need to practice in order to become adept at Forex trading, and demo trading accounts offer you with the grounds for learning currency exchange. That's how simple the deal really is!
 

Forex Demo Trading - Is It Good Or Bad For You?

However, certain underlying factors are found to be disadvantageous by many traders, leading them to avoid demos and go live trading directly. When you take a deeper look at demo trading, you will find that liking or disliking it is just a matter of perspective! For example, consider the virtual money factor. On a demo trading account, you are provided with as much virtual capital as you want to practice. 

Now the advantage of this is that you are not limited by any means, which is very good for beginners who want to measure the extents of things in Forex trading markets.
 

You can place million dollar trades and see how things play out - quite a benefit, from one perspective. The disadvantage here is that trading and playing around with such big numbers leaves you imbalanced for trading real-time. Even on live trades, you might end up having the same lenient mentality demoing gave you, and this lack of seriousness can lead to scary losses!
 

Another factor divided by perspective is emotion. Emotions are a very fragile element of life, and they are just as frail in trades. If you get too worked up, you might lose control of a trade that you would have otherwise won! While demo trading in India, the environment itself is such that there is nothing to create any mental pressure! You can practice relaxed, and learn the necessary skills with no tension.
 

However, mental pressure and tension are things you will need (in minimal amounts) when Forex trading in India! They give you the necessary fear to keep you from overtrading and draw the line between good trades and bad one. So when you move from months of demo trading, the mindset you have will be a stress-free one. This might work against you and leave you mentally unequipped to trade real-time.
 

Many traders feel divided between these perspectives while Forex trading in India. It all comes down to how you see things and how your approach is. Sign up with WesternFX today, and get yourself a stellar demo trading account to work on!

Top 6 Tips to Avoid Losses in Forex Trading in India

Averaging a trading value of over $5 trillion, the Forex market lives up to the reputation of being one of the most profitable trading ventures!  With a 24 hour opening, traders are free to choose from a variety of strategies and timeframes for their convenience. While the prospects of profit are tremendous while Forex trading in India, money-management is an issue every trader faces. Foreign exchange has volatility, unlike any other market! It houses enough potential to completely wash out trader accounts with just one rash movement.
 

Making money in currency markets comes easy, but keeping it doesn't. Without strict methods to manage your investments, your trading account will get blown up. 

Follow these 6 simple trading tips to avoid losing money in Forex: 

Experts Tips to Avoid Losses in Forex Trading

1) Research Amply Before Heading In: Forex trading involves a lot of research. The traders who get successful reach that point as a result of educating themselves consistently, and practicing the art. With many an element present to throw your trades off, trading currencies are easier said than done. Factors like the global economy, and politics etc., govern the efficiency of currencies and dictate the outcome of each trade. As an adept trader, you will have to know the possible risks that will have to be taken, and how each one will yield. 

Even the smallest of mistakes in Forex can have huge repercussions!
 

2) Demo Before Going Live: Forex demo accounts are provided primarily to help traders learn Forex in a risk-free environment. These platforms provide traders with virtual money and simulate trades so they can avail a second-hand experience of how deals are made on currency exchange grounds. Though demo trading doesn't replicate a real-time trade with risks and volatility, it provides ample knowledge regarding how a Forex player should react to a trade. 

Practicing here prior to real trades gives you a better grip over your investments and how you employ them in live trades.
 

3) Start Off Small: You might have thousands of dollars as your investment capital, but going all-in with it is definitely not the right move. When you're a beginner, make smaller investments and increment the amount gradually. Forex has no rule that says investing more will reward more! One of the best ways to save money while making more of it is to invest safely and calculate your moves. With smaller amounts being put in, even a bad trade won't inflict much damage. 

In addition to this, winning a small trade can reward amply in Forex.
 

4) Employ Healthy Amounts of Leverage: Undoubtedly the prime reason why several traders end up in catastrophic positions, leverage is as big a bane as is a boon in Forex. Leverage is the borrowed sum provided by brokers, to help traders hold positions of higher value. A leverage of 50:1 means that, for every $1 you own as your capital, you can hold up to $50 worth of trading value. This makes Forex all the more tempting and prompts traders to boost their accounts by multiplying investments with the added leverage. However, there is a catch to this; losing a trade that has been leveraged will completely blow up your account! 

Leveraged profits are one side of the coin, leveraged losses are the other. You will lose the borrowed money along with your own capital; this is what makes demo trading indispensable!
 

5) Don't Treat Trading Like a Gamble: Agreed that luck has a role to play in Forex; it is definitely not a governing factor. There are no shortcuts in Forex, and to have a successful run, hard-work and patience matter the most! Entering currency exchange markets with hopes of making money solely out of luck won't do much good. While a gamble relies on chance, Forex requires education and strategizing. The consequences, however, remain the same, in both gambling and trading - when you lose, you lose big. 

So does your research stick to a solid plan, and have ample Forex demo account practice.
 

6) Maintain Physical Records of Trades: This doesn't just help save money; it helps in becoming a better trader. As a Forex player, you will participate in a number of trades, the outcomes of which will vary accordingly. With several profits and losses made, self-analysis will become crucial. Trader mentalities tend to change just like the markets do! When you maintain notes of each trade, how you profited or lost, and what caused it, you get a clearer idea of everything. 

This helps better your approach, and narrow it down to making the most out of each trade.
 

Forex trading in India is growing quickly and the lucrative nature of these markets continues to impress. Pair yourself up with the right broker, and take your trading venture miles ahead! Sign up with WesternFX today, and master more than just money management. Our experts will guide you through the various aspects of foreign exchange like demo trading, strategizing and managing risks - ultimately ensuring you blossom into a fine trader! Call us today to know more.