This article is about trading in a foreign exchange Singapore demo account before you move on to a live account.
If your interest lies in trading on the foreign exchange Singapore market, you should commence with a demo account. This type of account is available to you on your forex broker’s trading platform and offers all the functionalities as that of a live account. The one main difference is that you will not be trading with real money.
You can open a demo account within a few minutes and it is not necessary for you to provide detailed information. Once you have opened an account, you will have the facility to start trading immediately. If this is your first time trading in the foreign exchange Singapore market, you should consider obtaining a mini demo account. You could also opt for an account that offers you various lot sizes.
The main problem with trading in a demo account is the large account balance it offers. The disadvantage to this is that most traders will not generally maintain such a large initial investment in their trading account. This could prompt you to start trading in a reckless manner simply because of the amount of capital you have readily available and because it is virtual currency. This is not beneficial to you as your method of trading will not be the same as when you start trading in a live forex account.
It is possible for you to request an adjustment to the account balance, by either emailing or calling your broker. Many forex brokers offer demo account with account balances in excess of $10,000. You should request a balance that is more in line with the one you intend doing live trading with.
Trading In Your Foreign Exchange Singapore Demo Account
You should set aside ample time to trade in your demo account. You should implement the strategies you intend using in your live account and not deviate from it. It is advised that you keep a trading journal where you list all the trades you enter, as well as the reasons why those trades were either successful or not. This will provide you with the opportunity to review your progress in the trading market. If you are suffering consistent losses, you have the opportunity to highlight the reason for this. Once you continue trading on a regular basis, you will start noticing a pattern in the profits or losses you make. This will allow you to rectify any mistakes you may be making whilst trading.
You should only move to a normal live trading account once you have gained sufficient experience in the market. Take the time to realistically consider if you are ready to enter a live account. You are the only person who will know whether you are fully prepared for this task or not.
When you first start trading in a live account, you should enter small trades. The mere fact that you will be trading with your actual funds will play with your emotions. It is simple to trade in your demo account because it is not your money that you may be losing, but the risks involved in a live trading account will play on your emotions.