Trading is a business! Income from this business depends on many factors. And getting a profit is the aim of everyone who decides to trade with binary options. For successful trading many things are important: experience, trading strategy, market situation…
How to behave novice who has no experience or strategy, nor even knowledge of the market? We need to learn the basics and take a crack at the trading. At the beginning, most of the trades will be in the red – it is absolutely normal for the novice trader. But the results will certainly improve with the mastering of trading science. There is no limit to perfection. Traders with years of experience say that every trading day opens something new.
But who wants to learn spending their own money? For beginners it is advisable to use a demo account. Trading rules for demo account are the same as for real account. The only difference is that you are trading not with real money, but with demo money (fake money). Demo account is required in order to master the trading platform, to learn different types of options, as well as to work out your own trading strategy.
But the demo account is not the only condition for the successful trading on a real account. In order to make the trading from demo account as much fruitful as possible and guarantee income on the real account you need to follow a few rules.
Rules for trading with a demo account
- Deposit, you are working with on a demo account should correspond to the amount of money you plan to invest to your real account. Accustomed to work with a specific deposit, it will be very hard psychologically to work with another amount.
- Demo account trading should be divided into stages. For each stage, you need to define the goals and follow these goals.
- Firstly, learn how to control losses – master the risk reduction tools.
- Next, learn how to keep the balance at the same level.
- The third stage is profit earning.
- This important step is connected with the choice of a trading strategy. There is a lot of material on this subject in Internet, including our website. The task for the novice trader is to study them and to check them one by one. Often, you can achieve the highest profitability in trading by combination of several strategies that you learned during training stage. At this stage it is important to “create” an own strategy, that will reflect your emotional approach to trading.
- The final step is a transition to a real account. Once you see the positive results of trading on a demo account – you can go on a real account. There you can improve your performance further, obtaining real profit simultaneously.
The important point is that the passage of all stages should not exceed one to three weeks from starting with a demo account. Do not forget that the true purpose of it is not to accumulate “fake money” on a virtual account, but to earn real money that can be easily converted into a payment for an apartment, beautiful things, and expensive cars.
You can try demo account absolutely free from one of the following brokers: