What is Demo Market?
Simply put Demo is a type of Trial Trading and if you do not have enough experience in trading, it’s better to begin with a Demo account.
The privilege is in that you get acquainted with the market and gather the required skills before making money. In fact, you get to know how to trade and what profit and loss are.
Why Demo Market prior to the real thing?
- Did you trade regularly for a month?
The market is ever-changing, meaning that if you have acquired a successful trading strategy for a few days, it may not stay the same way in a 30-day period. So, better start with a Demo account for a month to come up with a master plan!
- Have you tried different strategies?
There are hundreds or maybe thousands trading strategies. Prior to creating a real account, it’s better to make sure of your desired method. Also, ensure that you’ve tested different Day Trading strategies.
It is important that you stick to your plan in profits as well as losses; Even if you have a few consecutive failures in your trades, you must not alter your plan. Therefore, before going with the real market, try your strategies with a Demo account.
- Does your winning trades cover the losses in long-term?
If you couldn’t take any profit by the Demo account, most likely you would repeat your work in the real market; And trading there is way too different.
When you carry out some failed trades with real money, sentiments will replace rational decisions; Because you have lost real money and this will make you feel awful.
This very sentimental decisions are the reason to the subsequent failed trades. Hence, make sure that you come by profits in the Demo Market and then verify for the real market.
- Do you own any particular procedure to review your trades and increase your efficiency?
Many traders ignore such a thing since they don’t have enough time or the discipline to trade. OMPFinex can assure you if you dedicate enough time to record and review your trades in your Demo account, you will definitely gain profits in the real market.
- Have you created your winning trading plan?
Without having a trading plan encompassing trade inflows and outflows and capital management, you are doomed since the very beginning. You need your own specified trading plan to check everything before you enter a trade and not falling into wrong ones. Before moving to the real market, build your trading plan.