Trading Forex has become one of the most popular activities and more and more people are involved in Forex Trading every day. While some people decide to trade forex only for fun, others want to make money from it and live life while trading online. Before you start trading online, you have to understand the way you will have to go through and have to acknowledge what is Forex Trading at all.
Many people will never try to trade online, simply because they consider that this is a too difficult activity. Other people will never try trading online as they do not understand what it is. The rest of the people will never continue trying because they might lose a lot of money straight at the beginning of the trial. All of the outcomes are very realistic and moreover, they are valid. Though you never know unless you try they say, and this is what you really should take into consideration.
Before you start trading online at all, let’s discuss in a brief what is Forex and why does it matter, or why should anyone give up everything else and start trading online. Make yourself comfortable and be open to new opinions and ideas.
What is Forex Trading?
In order to have a specific desire of doing or not doing something, you should first understand the nature of it and only afterward decide whether you want to take up the activity or not. The Forex Trading might seem very complicated from the side, but once you understand the basics, you can build on easily. First of all, you should know that Forex Trading is all about your analytical skills and abilities to analyze the data and make the right decisions. To be simple, it is all about predictions and the right forecast.
The next question is, what are the forecasts and predictions about? Well, definitely not about the weather. The forecast and predictions should be about the currency value changes. We all know and see what is the currency volatility and why it is important. Observing the market and observing and analyzing the volatility and the factors that affect the volatility process is all that you need to be successful in online trading.
If you thought, that you were good at maths in school and have some basic knowledge about the economy you should definitely find yourself here. The volatility of the currency is something that will definitely help you out, but there are many other factors that you have to consider. The factors such as the inflation rate, the economic fundamentals, and the policies and the governmental regulations take a huge role in making predictions and understanding the market. The stocks, the prices in the stock market the shareholders, and their financial circumstances are all equally important.
While saying this, you might feel even more frightened and think that everything this is even harder than you thought, but it is not right. Do not overwhelm yourself with that type of thought. While Forex Trading is definitely not something everyone can manage to do, it is something that everyone can understand.
The market is very massive and very interesting. In order to understand the way everything works and the way that you should make your living via trading forex, take a closer look at the details. Everything matters, but the most important is your attention and your willpower. Forex trading requires some technical knowledge but it also requires luck.
You are new to the industry and should get technical knowledge first. There are different books, with very valuable information and very simple language. The first advice would be to have a look at those books and grab something from it. While at initial stages you should know some basics, such as macro-economics and economics as well as the tendencies and the stocks, the next steps are a bit more complex.
The basic knowledge will be your key to unlock the next level. The next level consists of strategies and the tested methods, which work efficiently for the trading forex. There are many books published by the very experienced Forex traders. It is very important for you to learn about the mistakes of others, or at least to take them into consideration. It is true that there is not a single ultimate strategy that will definitely make you earn a lot of money and will bring you millions, but there are some valuable strategies that will help you to outline your vision and make correct focuses.
Everything is very important while trading forex. It is not only about luck or it is not only about observing the market for a day and making predictions for the other day. It will require a lot of time and attention from you. You can test the strategies that are given to you via the experts’ ad to figure out your own.
While there is still a lot to say about Forex Trading in general, there are some major facts that you have to consider even before you start reading. In short, you make money from your prediction of the exchange rate changes and the volatility of the currencies. The trading is always made in pairs. This happens as the value of the currency is measured relative to other currencies. Any sliding of the currency towards the dollar, for example, can bring you valid cash.
Do not think that it is only about the numbers, it is all about the philosophy of the customer and the philosophy of the trader. The psychological aspect is very important and many authors highlight exactly this point. Meanwhile, risk management and discipline is another thing that is of crucial importance while trading Forex. All of this and even more is available in the tutorials or guides, where you can get more detailed information regarding the techniques and strategies.
The Beginning of the Act
One of the most important things you will be doing as a trader is picking the broker you want to trade with. This process is not as easy as many presume it is, specifically because all brokers seem to offer pretty much the same thing. Most of the things they offer seem to be a result of marketing, promoting certain things over others. And in this sea of brokers offering the same services and similar marketing strategies, it is really easy for scam brokers to slip through. This is why you need to do a lot of research on the subject of picking a broker. It is also why you need to be able to do research with reliable sources that can provide you with lists of brokers to trust or not to trust.
Beyond simply considering whether a broker is a scam or not, you also need to consider whether they cater to your needs the way you need and want them to do so. While most brokers are pretty much offering the same things, some of the top ones do have distinctive features. Features such as trading for free, or specific charting or indicator benefits that other brokers are not necessarily able to offer. Looking into individual offers by the top brokers will allow you to determine which one might seem the best to you.
Now that you are aware of the best brokers on the market and might have arranged a list of your favorite brokers to work with, it is time to look into working on your skill with trading.
Through this review, we will uncover some great tips and tricks and one of the most important tools Forex offers you in order to start trading online and become a successful Forex Trader very soon. You might have a question if everything above mentioned is essential to be a successful Forex Trader, how am I supposed to be good and not lose a lot of money during the learning process? This is what we will be addressing. How to trade forex without having money online.
What is a demo account and how can one learn with it
Demo accounts are very similar to real accounts. You have the same tools, features, and signals on the demo account just like you would have on the live one. The exchange rate of the currency pairs is the same and is affected in real-time as it happens on a real account. The only difference between live and demo trading is that there is no money involved. To be more precise, there is no real money. When you open a demo account you are given virtual money that you can use for your trades. When your account is going close to zero, in most cases it is funded again by the broker with more virtual money. Some brokers offer demo accounts with limited virtual money and limited time, which is usually 30 days, however, some accounts are unlimited and you can use it as long as you feel you need it. As you could already understand one cannot make profits on the demo account. It is solely for educational purposes, as there is no real money involved, you also are not responsible for losses occurred on the demo account.
Why should you learn from the demo account
If you want to become professional at least theoretically, even before putting your own money at a risk, then you should use the demo account. There are multiple reasons and advantages of the demo account, which you have to consider before choosing one.
The first and the most important of all is that the demo account can be a tester of your knowledge. If you decide to buy a book or get acquainted with the simple and basics of forex trading as well as economics, the demo account gives you the ability to test your theoretical knowledge and see in practice what you remember and what you have learned on the way. Another great advantage of the demo account is that it is trading in Forex without investing, consequently, there is no stress. You can keep calm and not stress about losing money because of your mistakes. This is something very important as you will keep on making risky steps and not looking back. Though, remember those steps should be reconsidered and reviewed several times as well.
With the demo account, you can still be up to date with the current market and the active changes. Not all information might be up to date as it is in with the live account, but the data about changes should be enough for you to be able to observe changes and make decisions and outcomes while trading in the virtual world.
The platform is a bit harder than the google doc, your online bank or excel sheet, this means that you have to get used to all of the tools that the broker offers you. There are a number of tools that you also have to learn. During the time of using the demo account, you are free to experiment with the tools and learn their purpose closely. Also, observe their operation and generally get used to the platform.
There are many brokers in the market. The competition is very high, and thus the better the platform is the more users and costumers the broker has. Usually, if the broker does not offer you the demo account it can be considered as a disadvantage. While on the opposite, if the broker offers you the demo account you should already be positively charged as it means that the broker indeed wants to teach you something before you start trading with real money. Though, during the demo account, you might still dislike certain options, features, or demo trading soft of the broker. It is very good as after the trial period you will be able to choose if you want to stay with the broker and continue trading with that exact broker or perhaps find someone else.
Last but definitely not least, it is all about yourself. The demo account helps you to find out your strengths and weaknesses. You might be good at literature and you might understand the book and the strategies very well theoretically, but in practice, it is very much possible that you will not be making a successful forex trader from yourself. While all skills are trainable, you can measure and rate your skills and capabilities even before spending your own money. The demo account gives you the opportunity not only to observe the market but also to pay careful attention to your skills and how profitable you are.
In the end do not worry, if you find out your weaknesses you can always work on them with the demo account and switch to the real account only once you are ready to do so.
The best way to use the demo account
Besides the great opportunities the demo account offers you, we will stress on certain advice and tips which should be extremely helpful once you start trading with the demo account. Here is everything you can benefit from while forex trading with no money.
Doing something new is always very exciting and we often want to do everything at once, but wait. Do not rush and think of something that will be helpful and beneficial for you in the future. Do not start pressing all the buttons to see what will happen. Instead of testing everything right away when you start practicing on a demo account focus on one or two currency pairs you want to trade when you will switch to the real account. This way you will already be familiar with it when you start trading.
As mentioned before there are a lot of strategies that are tested and have very positive feedback. You can use some of the strategies and check how they work for you. While some of them will be suitable for you, others might not gain your positive attitude. Though do not abandon a certain strategy just because it did not work right away, give it time, practice a bit with it and if it does not work, check another one. You can always have plan A, followed by plan B.
The trading process requires a lot of attention, focus, and willpower. Not everything will be clear and smooth in the beginning. Thus, you should always keep your track in order not to get lost. The best way to do this is to keep a record of your trades and actions. Write down every major step you have taken and write down the outcome. After a while have a look at it again and evaluate it. This will help you see your mistakes and give you the possibility to work on them so that you are prepared once switching to the real money account.
It is very important to keep sane and rational. We do not recommend you pressing all the buttons at once. Be rational and choose the strategies and moves that you would have made if trading with real money. This is essential in order to keep up with reality. While the demo account is more stress-free, you still have the responsibility of having a profit. In the end, this is what you came for.
When you are just starting to trade it is not advisable to trade with a big amount of money. Instead, you need to have a certain trading budget. Let’s say you want to start trading with 500 USD on the real account. During virtual trading, you might be given 100,000 USD virtual money. Instead of using it all, try to limit yourself with the amount that you will have for real trading. This way your practice will be close to reality.
While it is good that at the beginning of the trading process you are not losing your money, it is also bad as there is no psychological aspect included. This is essential as the fear of losing your money will make you doublethink and reconsider your decisions. The real money account the psychological trading plays a huge role, which often leads to losses. While overplaying with the demo account, you might be very unprepared for real and responsible decisions. Thus, it is very important to keep your feet on the ground and evaluate yourself objectively.
Before you open the demo account
So once again, let’s go step by step guide what you have to do before creating your demo account. Those steps are essential for you to benefit the maximum from free trading.
Make sure to get mandatory knowledge about Forex trading. It does not mean that you should know everything, but you need to have enough knowledge to distinguish what is what when you are trading. To say simply, you need to know how trading works.
Baby Step: As mentioned before, the forex platform is slightly complex and there are many tools that you will come across which you have to know and understand in order to be able to proceed with the cation. There are two options, whether you read a book, with the very well defined major points, or you can google certain things or turn on the tutorial. This can also be helpful, but in this case, you will have to learn everything on the way. Some of the reputable brokerage pages may also have the forex dictionary or glossary that you can address.
Toddler Step: There are a lot of sources of information. Many videos, tutorials, and books are available on the internet. Make sure that the source you choose is reliable and reputable. Double Check the source first and only after starting going through the information. The best-case scenario is when you stick to one or two sources. One can be a book and the other can be a dictionary, or a video and an article. In this way you will avoid any further frustration, looking for the information and coming across different opinions. Do not overwhelm yourself and take everything easy. You might need some time to memorize everything and this is completely okay.
Adolescence Step: This stage is very important. Basically, it can be said that most of your experience depends on this specific choice. I am talking about the right broker. Be extremely careful while choosing the broker. Find out information, read reviews check the feedbacks and ratings. You do not want to be scammed at your first trial, do you? There are a lot of brokers and all of them have different offers. Check the most profitable offer for you and go through the terms and conditions. Again there are a lot of guides that will help you find a reliable broker that offers good service. Make sure the broker has the features that you need to be successful. The most important feature is, of course, the availability of the demo account. Once you find this kind of broker, open a demo account, and start practicing.
Teenage Dream: Once you have come through all of the stages mentioned above, you are ready to start trading with the demo account. Make sure to keep up with tendencies and thus, always read for the new concept, news, changes, regulations, and success or failure stories. This is the moment when you can practice, train, and sophisticate your skills. Dream of doing great things and you will do them one day. Constantly read financial news from reliable websites such as Bloomberg or CNBC, you need to be
Adulthood Step: Switching from a demo account to the real one can be exciting, but it can make you nervous as well. Nobody likes to lose money and the feat of it is really great. Most probably it will be difficult for you to find where to start or how. At some point, you might feel that you are ready, but at another point, you might not be sure anymore. This is completely okay. You are entering the new stage of your life. You are entering the adulthood period.
This was all about the demo account. Though, there is another way to trade without money online, which is called no deposit bonus. This is another great way to achieve your professional level without losing your own money.
What is No Deposit Forex trading?
We usually come back to our decisions when we are simply stuck in the situation. We know that we need help whenever we can not find the way out and that’s when we recall all of the major things we have ever heard or read. Usually, we do not even read the contracts while signing them. we only get back to them once everything does not look appealing to us. In certain situations, we have a way back, but in others, there is no way out. In order to not to face the same struggles and not to blame ourselves for the lack of attention, it is definitely better to pay attention to time and to keep everything in control. While trading online we can not push the back button and we can not go back to the previous page without losing a lot of money and wasting our time.
While there are certain ways to learn how to make responsible decisions in the best way and thus simultaneously not lose a lot of money, Forex trading with no deposit bonus is definitely one of them. This might sound interesting, as there is no deposit, but there is still a bonus. Indeed, everything is way more interesting and deep than you thought.
No deposit bonus accounts are mainly designed for beginners. Just like the demo accounts they give you the ability to learn trading online without losing and wasting your own money. This is another great option to train your skills and to find your week and strong features. There are still some differences between the no deposit bonus account and the demo account.
With the no deposit bonus account, you do not have to contribute with your own money, but instead, you will be given a certain amount of money by the broker. For this, the first thing you have to do is to register your account. At the very end of the registration process, you will receive the bonus fund, which will be credited to your account. While creating the account you will need to provide all the required information.
Once you complete the registration process, a certain amount of money will be granted to your account. Though, the money will be granted for a certain limited time only. The time limit and the money amount depends on the broker and the features they offer.
What to take into consideration
Just like with the demo account, you have to be extremely careful and attentive while choosing the broker for your no deposits account. The market is huge, and there are many valid brokers. While the reviews and the feedback are more or less available for each and each of them, some might be just very well packed scams and frauds. Make sure not to be the victim. Usually, the brokers do not give a lot of money for the no deposit account and do not get very excited if seeing a solid amount of money offered by the broker. Most probably they are trying to attract your attention only. Usually, this is the broker’s you should be fearing the most.
The very important thing is the license. While the competition in the market is very big, there are a lot of brokers, but only the licensed once are legit. You can check the license of the broker. Be careful, the license and the number of the license should be placed somewhere on the bottom of the page, but should be accessible easily. Once you check the license and it is present this means that you can trust that broker. If any concerns are raised with further collaboration, you can always address the regulatory body.
The next thing is the experience. If the broker is present in the market for a year or two, do not rely on the experience of that broker too much. The best offers come from the ones who have been operating for quite some time. The experience can also be checked through the feedback and the reviews.
One more thing to consider is the deadline and the limitations set by the broker. Usually, the deadlines are too short, which makes it not even worth trying or a scam. Raise your awareness concerning the withdrawal of the money. If there are too big numbers with the very limited time for trading with them, it means that you will not be able to make a profit out of it and if you exceed the deadline not even withdraw your money.
No Deposit Bonus Account Trading
Let’s dig a bit deeper and figure out what is the no deposit trading. Once you register your account and choose the broker, the broker will give you a certain amount of money on your account. Usually, the amount of money is somewhere between $25 and $100. The too big number might be the clear example of the broker being a fraud. The next thing the broker does is setting the limit. The limit is for time. While you do not make any contribution to the account, you are not allowed to withdraw your money, given by the broker unless you comply with the conditions. A certain amount of time is given to you in order to trade the specific amount of time the bonus you are given. If you fulfill the requirement you are able to withdraw your fund.
Remember you can trade with as little as $1. This is very much real. With the minimal amount of money and with the multiple trades you can easily multiply your funds. Thus, big amounts do not necessarily mean a big profit. You make a profit by the leverage, which is the number of trades, that multiply your fund. This is exactly why sometimes you see quite big sums in terms of withdrawal. It is possible, and it doesn’t mean that you have to trade millions with only 1$ see how much money is it offered to you. It means that you have the leverage to multiply your trades. Though, conditions, as mentioned before, are determined by terms and conditions. Question not only the broker but yourself as well. How much are you willing to get out of it.
Do not be afraid of trying. You should not be focusing on earning a lot from the first trial, but instead, you should be focusing on benefiting as much as you can and trying all the ways inside out. The moment you decide to trade without deposit and are given the bonus, make different maneuvers, apply the strategies that you have heard, or read about, do not be afraid to accomplish your capital. While doing this, do not forget to pay attention to the analysis and the market as well as observe all ongoing changes. It is okay to spend some time figuring out the best way that works for you.
Once you have wasted all of your money on your no deposit bonus account you are done with the free trials. If during this time you were not able to accomplish the requirement, it is still a win-win situation. You have gained some practice and experience and not lost a single cent. Though, if you apply all of your knowledge and skills to trade Forex with no money, you should accomplish your goal and should be able to withdraw it.
Withdraw your funds
Before creating any type of account with any broker, make sure to get through the terms and conditions first, Just think of the terms and conditions as your contract. This will be your guiding document through the legal side of the trading. you have to take the legal aspect seriously and get acquainted with it on time. When you read the terms and conditions you should also come across the withdrawal section.
In the part of the money withdrawal, you will find the information about how much money you can withdraw and under what conditions. You will be informed about the amount of money you will have to trade with the broker before you are able to withdraw any money at all. If the amount is a valid one for being real and to determine is it really possible to accomplish. Also, there might be a tricky part, where the broker might be asking you to make a deposit together, so that afterward you can withdraw your deposit money.
Too good to be true
While we have listed everything that might happen on the way, we have also shown you a clear picture of how to live your best life while trading online. Is it too good to be true? Well, you can be another great top Forex Trader in the world and earn millions, but you might also not be the one. Remember that while everything is all about practice it is also about luck as well.
What you have to do is to be careful and not miss any single opportunity. It often happens that someone who is in the right place at the right time has it all. So in order to be that one person, make sure to observe the market systematically, have a close eye and start trading on the account without a deposit. Test your skills and get as much knowledge as you can. Do not be afraid and take wise risks. Who does not risk, does not drink champagne.
Several more things until we move to the final section of the review. Make sure to double-check everything that you are told. As some would say, trust, but check. Unfortunately, the online world is not a fluffy one and it comes with its dark sides. In order not to be a victim, you have to be attentive. Check the broker, check the background, check the reviews, check the authors of the reviews, and ask for feedback. Check the license and go through every possible source. Remember you have your money on the scales.
In order to avoid any further inconvenience, see if the broker has the online support or the client support chat. This is an essential part, as when you have a problem you should have someone to address and someone to ask a hand of help. If the broker does not have that option, I would not recommend trading with that one, better find yourself a better option.
Also, if there is a tangled in terms and you simply can not understand what in between are all of those words, please try to avoid signing up for the bonus, does not really matter how attractive is the amount of offered money. Most probably you will be scammed and never figure out the actor, as most of them vanish, just like the ashes in the wind.
Even if you think that you do not invest anything while Forex trading without deposit making, you are mistaken, you invest your time and your skills. You develop and you find out more about your skills and capabilities on the way. You might see some skills that you did not think you possessed and you might develop the ones you have always wanted to have.
The time has come
Whether you choose to have the demo account or have the no deposit bonus account, after some time you will have to switch to the real account. This was your initial plan, was not it? Otherwise, why do you spend so much effort and time on trading without real feelings? It is very much possible that you discover that trading online is not something for you after some time spent with a demo or bonus account, though in the best scenario, you will make it work.
There is time that you can be efficient while trading with no money, but after some time you have to start trading with real money. How do you know he does this moment come? There is no specific answer to this question, at least you will not be able to read out the answer from the guide or the book or be told in the tutorial. The moment comes with the feeling of being ready.
While there is no specific answer, there is some consumption. Some fo the researches and observations tell us that the most objective and realistic period is from six to eight months. This is the time our brain needs to adapt to the new circumstances and to memorize all of the information we have been practicing. This is also the period when we get used to doing something. So this might work for you as well. But, do not follow this observation, your time might come earlier or later and it is completely normal.
Once the time comes, what to do
Once the time comes and you are waiting for your star to shine, do not get over-excited. Try to be realistic and remember everything you have learned. There are some steps that will help you in order to switch to reality.
First of all, it is very important to make a certain budget. It is very important to set aside the amount of money you can afford to spend. Make a rational decision. In the beginning, you can even take a bit less than you initially thought, as you will be more careful with your funds. But make sure that the amount is reasonable and affordable simultaneously.
Another thing to do is to consider that you lose all of this money. Now, think once again. How much money you are able to lose and how much money you can afford to lose without it affecting you too much. Once you have made calculations, put aside the amount of money.
While going real, it is still good to have some benefits. The best option is to find the broker that offers no deposit bonus. This means that you will be given extra money to spend, which means more chances to earn more money and more chances to train your skills.
Do not make the common mistake and do not focus on making a lot of profit straight from the beginning. While maintaining a positive attitude and thoughts is essential in any business, it is also very important to maintain realistic thoughts. What we would offer you, is to try to minimize the losses rather than making a profit. Of course, the main idea of trading online is making money, but first, you need to learn how to make the money. Chasing profits is not the best thing the beginner trader can do. It will make you deposit more and more money and ultimately, you will lose even more. Hence, take care of your losses as well and make sure you are having less loss.
Conclusion
If you have come to this point, it means that whether you had a brief glance and expect to find the shortened versions of the whole article here, or you have come all the way here and read all of our recommendations and advice. In any case, hope that you found the information interesting and useful. But, for those of you who had a glance, the very brief step by step information is here as well. As for those of you who have come all the way through this will be a revision.
Double-check yourself before setting off. Do you understand the concept, have you explored the market, do you know how does the leverage work, you have a clear idea of all the tools that you should be using, including the software?
If you know everything and have at least a brief idea, you are free to start your trial. You can register with trading demo platform and trade online with the virtual finds, without any funds but without any risks as well. Or you can also create the no deposit bonus account. There you will get a certain amount of money and instruction on how much you should trade.
Check the broker. Check the background and experience. Go through the reviews and feedback. Be careful with the license. Make sure it is present and the broker is under the regulatory body. Address the support team if there is any inconvenience and go through the terms and conditions. Create your account and use the theoretical knowledge in practice. Once you are sure that the moment has come, you are free to create your real account.
Think positively and be attentive. Do not miss your opportunity as every opportunity might be just the right moment for you. Be attentive and have strong willpower. Always leave some room for development. Once you keep positive and are ready to start your journey into the Forex world, may the odds be in your favor!
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