Different ways to use a Demo Account
If you’re already a trader, a Demo account can be just as useful. Because of the lack of any real-world consequences, it’s the perfect place to test out new strategies.The following are some examples of where a Demo account would be ideal to existing traders:
Approach your Demo trading like you would Live Trading
Here are some handy tips, that can help you practice this live trading.
Tip #1: Pick the same type of account
Choose an account type similar to the live account you plan to trade with. Pick the same account size, leverage, currency etc. that you would trade with when you make the switch.
Tip #2: Trade how you normally would
Don’t place larger positions or open orders without looking at your charts or Market Watch board. Trade like this was actually your real money.
Tip #3: Don't trade beyond your "means"
For example, if you’re the type of trader that will only be trading small lot sizes, there’s little benefit in placing huge trades using the Demo account. All that does is create an unrealistic representation of what your Live trading experience will be.
Tip #4: Make the loss seem real
A fun suggestion from Babypips includes giving yourself minor 'punishments' for each loss. As you you don't really lose anything in a demo account, Babypips suggest doing things such as "90 second planks" or do an extra chore as a physical reminder of loss.
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