By Hillary Walker
The trading community is growing fast, as the pandemic has stimulated interest in remote money-making. Forex is its popular avenue. The global foreign exchange is a colossal market, and it is now a tap away. Using sophisticated platforms and apps, individuals make money by monetizing financial acumen.
Despite all technological advances, currency rates are not entirely predictable. Every beginner must learn safely before making their first deposit. Learn how to create demo account on the Olymp Trade site and test the software for free. The best global brokers offer this service.
Step 1. Download the Software
With a demo account, you can explore the trading software as long as necessary. The choice will be determined by your provider. Every broker offers one or more products, both desktop, and mobile.
Sometimes, you may use any convenient device — a laptop, PC, tablet, or smartphone. Your demo is accessible on all of them, so you can learn conveniently. All popular OS (Windows, Mac, Android, and iOS) are supported. As all versions connect to the same servers, data is shared instantly, and you may always pick up where you left off.
Step 2. Explore the Demo
In the demo mode, your software works as a simulator. It mimics real market conditions, so you can see how everything works. Explore all the features you will use in the real market. Analyze price charts, study trade parameters, and explore risk management tools.
On average, traders need up to 3 months of safe practice before they can enter the real market. While Forex is not rocket science, it does require a solid understanding of how the rates move and how to predict them. Do not rush it. When you finally enter the market, your capital will be at stake.
Step 3. Develop Your Strategy
Retail trading has existed since the 1990s. Over the decades, experts have developed multiple strategies like day and swing trading. Choose a style that suits your current needs and opportunities. For instance, scalpers work in a very stressful environment, as they make frequent short-lived trades throughout the day.
Discover different methods of analysis. To foresee changes, you could focus on media information or scrutinize the charts. Technical and fundamental analysis are two approaches that may be combined. The first system is based on recurring patterns of price movement. Meanwhile, fundamentals are factors like interest rates, oil prices, and GDP — i.e., political and economic drivers behind the currency market.
Step 4. Enter the Market
To start trading, you need to switch from a demo to a real account. Your broker may request a few documents to verify your identity. Different deposit and withdrawal methods may be available.
A Word of Caution
You must have a solid risk management strategy in place when you finally answer the global market. It always feels different from a demo, as your decisions result in tangible profit or loss. Prepare well, and Forex will not disappoint you.
(Disclaimer: The article is sponsored and hence, promotes some commercial links.)