Demo trade, live trade, this battle just adds to the preexisting pile of confusion you carry as a Forex trader. As a Forex trading beginner, traders are often confused if they should demo practice first or start trading on a live account right away. The reason behind this confusion is simple - a Forex demo account doesn't account for real-time risks, which demo traders are left unaware of. On a live account, you can place trades without the safety of a demo platform; meaning, the risks are all around you and you get to learn first-hand. Both methods have their own pros and cons, but as a newbie, differentiating between them is easier said than done!
Here are some points for you to keep in mind when this particular dilemma strikes:
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| Why Both Demo & Live Trading Account are Essential |
Demo Trading Is Convenient When Starting Out: Beginners don't have much leeway as they start. A live trade is too volatile to learn on! There's a variety of information to be consumed and this gets overwhelming. On a Forex demo account, you need not worry about the market risks getting in your way. Trade all you like with virtual money, on a simulated environment designed to show you how the markets work!
Emotional Control Is Learnt Better While Demo Trading: Losses and risks are a part of Forex trading, and this is an expensive lesson when learnt. Not having the necessary emotional control can cost you a lot while Forex trading in Malaysia. Getting too scared or greedy, or confident, has led several Forex traders to their downfall! On a demo account, you'll be able to hone emotional control steadily since the entire environment is virtual, with no repercussions to fear.
Live Trading Helps Manage Risks Better: While demo trading has said advantages, live trading helps manage real-time trade risks better. You can't learn risk management with virtual money - there's no risk involved in that! On a real-time trade, however, there is a plethora of risks to stay wary of and learn to avoid.
Trading On A Live Account Gives A Better Market Feel: No matter how much you trade on a Forex demo account, it's ultimately just a practice. To get a good grip over the markets, you have to trade live. Real-time trades give you the full display of how the chaotic world of Forex trading is.
Before you start Forex trading in Malaysia, you will have to decide your training method. Both demo trading and live trading are fruitful, it all comes down to preference. And at WesternFX, we have all the provisions you'll need to get started with Forex trading! Reach out to us today and we will equip you with the best of facilities needed to learn Forex thoroughly.
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