Demo Demo Demo
Demo trading is a great option when you want to learn how to trade the Forex. It enables you to try out your methods for real but with no risk at all.
I demo traded until I had been profitable for three months in a row. At that point I had concrete evidence that I had a method that gave me an edge over the market and could produce solid returns.
What other business gives you this luxury to try before you put hard earned cash on the line? It’s such a brilliant way to learn and gain confidence in how to trade the Forex and costs you nothing.
Most Forex brokers offer this service free of charge and to open a demo account takes minutes.
So I recommend before opening any live account, start off with a demo account and acclimatise yourself with the trading platform (Metatrader 4 or 5).
Just make sure the Metatrader platform has New York close charts i.e. daily candle closes at 10 pm UK time.
Having confidence and proof you can make profits consistently from the Forex, prevents the negative mind games that occur when say, we have a trade go against us. We need to trust ourselves before we can really trade without fear.
Forex trading requires a broad spectrum of experience to be able to master the markets. The problem is experience can’t be bought, it has to be earned.
One area that can be practised to gain experience though, is the price action setups and learning to read price action.
The Metatrader platform has a great facility called the “strategy tester”. This is a program that allows you to go back in time and trade on any time frame.
If we were to just scroll back on our charts from the current live price charts, it’s too easy to spot the good setups because we are able to see where price went afterwards.
Strategy tester is different because it gives us the chance to replay the charts back to any desired point in time and watch the price action form as though it was a current live chart. You also have the option to speed time up or slow it down, it’s very flexible.
Back testing is such a valuable tool and is completely free to use.
We can use the strategy tester to practise different trade management styles and work out which we like best. It’s definitely worth spending as much time as you can using this tool to get that important experience you need.
It’s all down to you, the more you put in the more you get out!
So practise, practise, practise!!
To find the strategy tester
Go onto your Metatrader platform, click on the “VIEW” icon in the heading list. Scroll down to “strategy tester” it’s usually found one from the bottom of the list.
The strategy tester will pop up in the bottom of your screen, where you can adjust the setting to the desired pair and time frame. Then hit “start” once you are happy and away you go.
Module 1: The Basics
- Unit 1: What is the Forex?
- Unit 2: Forex terminology
- Unit 3: Fundamentals v technical analysis
- Unit 4: What is price action?
Module 2: Market Analysis
- Unit 1: How to analyse the markets
- Unit 2: What types of trades can we use?
- Unit 3: Marking support and resistance levels
- Unit 4: Time frames/best times to trade
Module 3: Price Action Setups
- Unit 1: Price action setups introduction
- Unit 2: Pin bar
- Unit 3: Engulfing bar
- Unit 4: Inside bar
- Unit 5: Sandwich combo setup
Module 4: Chart Setup
Module 5: Trade Management
- Unit 1: Trade plan
Module 6: Trade Psychology
- Unit 1: Psychology introduction
Module 7: Continue your learning
- Unit 1: What next?