Pros and Cons of Trading on a Forex Demo Account

Practice is essential to growth, and growth is of paramount importance while Forex trading. Foreign exchange is an incredibly profitable trading market but by no means an easy one. Of the thousands of aspiring traders today, only a handful manages to make it out successful. They do so because of untiring practice. With months of dedication and relentless research, traders are able to perfect Forex trading strategies and work through risky trades with ease. But before they take the big steps, all the smaller ones are taken on a demo trading platform.
 

A demo trading platform is a virtual account where you get to practice trades with virtual money. Since everything is simulated, the demo platform is completely risk-free. It's the perfect starter for newbie Forex traders. Though designed to help traders, many professionals believe demo trading to be counter-productive. Several traders feel that while a Forex demo account provides the physical practice, it fails to ready a trader psychologically. One might believe it's all a matter of perspective. Even professional Forex traders use demo platforms from time to time, for testing out strategies.
 

Pros and Cons of Forex Demo Trading Account

 

There are always two sides to every coin, and two sides to demo trading as well:
 

Demo Trading Account Pros:
 

1) On a Forex demo account everything is virtual, and hence traders need not fear any real-time market risks haunting them. A typical live trade consists of several risks due to the volatile nature of Forex trading. Facing these risks as a beginner will be harrowing! But on a demo trading platform, you will be able to learn how to trade without fearing such risks.
 

2) You can learn how to draft solid Forex trading strategies on a demo platform. Several professionals follow this tactic to measure their strategy's viability.
 

Cons of Using Forex Demo Account:
 

1) No amount of demo trading can prepare a trader to face a risky real-time trade. In a live trade, there are several elements to consider, and a Forex demo account can't replicate these in the simulations.
 

2) Demo trading doesn't prepare a trader to face trades psychologically. Since demo platforms come with virtually infinite capital, traders tend to get softened by it. In real-time, however, your resources will be finite and the same risks taken on demo can't be taken here. 
 

The best way to know if demo trading is for you is to try it out! Reach out to WesternFX today and get a free Forex demo account. Experiment all you want and avail our experts' trading guidance side-by-side. Backed by proper assistance, you will blossom into a fine Forex trader in no time! Call us today to get started!

Principles of Leverage & It’s Applications in Forex Trading

If a trader had limited money to work with, stagnation would be reached swiftly. He/she wouldn't be able to make significant profits with limited Forex trading capital! In addition to this, several traders would go bankrupt trying to win risky trades with money they can't afford to risk. This is where leverage steps in. With this money borrowed from your broker, you will be able to hold positions of huge value, without having to shell too much of your trading capital. The profit potential unlocked by leveraging is unparalleled!

You can make huge wins without spending even half of your capital, but you can lose big too - which is what makes leveraging a risky ordeal.
 

Using Leverage The Right Way
 

Principles of Leverage in Forex Trading

Other than intensive research and risk management, not much goes into leveraging. The first step is to sign up with a Forex broker who provides a good trading account. The Forex trading leverage provided varies from one broker to the other; some provide 20:1 while some give 500:1. Similarly, the leverage depends on the investment size, its position and the asset value. To trade with leverage, a minimum capital requirement of 2% has to be met; this is called the margin amount.
 

If you want to trade $50,000 on a leverage of 50:1, you are required to have at least $1000 in your trading account. Another important thing to note is that, while Forex trading in Malaysia, a trader should always have money in their trading account. Should certain capital levels drop, you won't be allowed to trade. Only with leverage can a trader expect to see profits of significant value. While a normal trade might allow you to make small winnings, the big profits only come with big risks and big leverage.
 

Why Do Traders Fear To Leverage?
 

Several thousands of traders harbor a belief that leveraging is bad. There's a fine line of difference between bad and risky; leverage is risky, but in no way is it disadvantageous. In the hands of an adept trader, leverage will help him/her reel massive profits. Most Forex traders who fear leverage have either carelessly lost a lot of money or are blindly following others. Leverage allows traders to risk money that isn't theirs, thereby making Forex trading all the more liquid and viable.
 

Leverage can be good or bad, depending on how you wield it. It's a double-edged sword after all! With the right broker to guide you, you'll master Forex trading in Malaysia and make your way to big profits in no time. Sign up with WesternFX today and avail our world-class Forex trading strategies. Our experts will teach you how to leverage right, and ensure you make it to the top echelon.

4 Tips to Improving Your Forex Trading Decisions

Succeeding at Forex trading requires more than just a handful of indicators and a few strategies. When all the deals have been made, the outcome ultimately boils down to how quick and meticulous your decisions are. This doesn't mean beating yourself up over a few bad moves, nothing can be perfect in Forex. However, when it comes to the more crucial trades, you ought to make the best calls. Decision-making in Forex is a tough process. It has to be backed by experience, which only time grants. However, you will have to make apt calls even as a beginner.
 

Here are 4 tips on how to improve your trading decisions:
 

Tips to Improve Your Decision Making Skills in Forex Trading

1) Maintain A Trade Journal: A trading journal does a lot more than simply help record your trades. With a trading journal, you can keep a neat track of your deals and analyze them down the line. Improvement in Forex trading will have to come from your end! If you keep trading without any self-analysis in between, there will never be any growth. Get yourself a diary and start noting down how each trade went, what led to that outcome and how things can be improved.    
 

2) Observe Professional Traders: Professional traders who have reached the top haven't done so by getting lucky. While a hint of luck does help, it is mostly a skill that leads to success. With an eye on their trades and their trading life as a whole, you can get a good idea of how to better your approach and make decisions that are more profitable. Get a free Forex demo account for practicing your various trading strategies.
 

3) Trade With Patience: Patience is a mighty important virtue to have while Forex trading in Malaysia. Each trade you make has to be given time. Getting hasty will cloud your mind with worries of the outcome and will ultimately hinder you from growing as a trader.
 

4) Improve On Your Failures: Failing is a normal event while Forex trading, there is nothing despicable about it. Only when you don't learn from your failures does it become a problem. So make sure to keep improving your approach every time you fail!
 

If you want to profit while Forex trading in Malaysia, you will have to keep working on both your trades and yourself! With enough work put in, results will start surfacing gradually. Get yourself the backing of some of the industry's most seasoned experts - call WesternFX today! Our professionals will assist you through all your trades and make sure you walk out with profits. Reach out to us now to know more!