Trading forex isn’t a game, but it’s surprising how much you can learn about currency markets using monopoly money. 

Signing up for a demo account with a leading forex broker allows you to do just that.  You can pass go and try trading in a live environment straightaway using £10,000 in virtual funds. This key feature of forex brokerage trading services lets novice traders get a feel for what they can expect when real money is on the line. 

What’s great about this option is the freedom to gamble with virtual cash in order to refine your trading skills and prepare for the day when you put your own capital at risk. 

Starting out with £10k will give you enough funds to sustain a valuable trial period. If you’re new to the game and don’t have much prior experience, you can learn the ropes by test driving the demo accounts services and capabilities, most of which reflect what you’ll have access to later when you go live.

Forex demo accounts use actual market data to reflect what happens on a real trading account.  Forex brokerages offer them as a way to attract prospective new customers, by helping them understand how currency markets work.  Potential customers also get to see how the broker’s platform performs, and the range of services available.

Having spent some time making virtual trades on the demo account, you can start to adopt specific trading approaches like day trading and see how they do.  You can also begin to build a trading strategy that reflects your goals. 

The key to making that virtual £10,000 investment payoff is to trade as though the money was real, responding to the actual market conditions and adopting a trader mind-set.

To open a forex demo account and set the £10,000 funding amount, follow these steps:

1- Make a shortlist of forex brokers to try. There’s no shortage of forex brokers to choose from, and any Google search will give you pages of options.  Do some research to work out which ones have the highest satisfaction ratings. Select one or two to try out first.  

2- Use the tutorials and other educational tools. The internet is chock a block with introductory forex courses and DIY guides. The information a demo account broker provides tends to be of high quality and will be geared to their platform’s features and benefits, and they’re free – so it makes sense to take advantage of them. 

3- Configure your account settings. You’ll want to configure your demo account just as you would do with a live account. To keep it real and trade as though actual cash were on the line, restricting yourself to specific pairs, and ensuring each position has stops and other risk management tools turned on.  

Eventually, you’ll be ready to make the leap to live trading and test your skills against the market. To help mark when that day should be, it’s a good idea to set benchmarks. That might mean completing your first 50 trades, reaching 15 per cent of the demo account virtual funds balance, or hitting a full month of profitable trading. 

Maximising the virtual funds in your demo account will make the transition to live that much easier.

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It is very important to understand the fact that CFDs trading is not risk-free. You can still lose money so you always have to be careful. After all, you are using your money. Make sure that you avoid any broker or trader that promises gains since you are most likely faced with a scam.

Fortunately, there are things that you can do in order to minimize risks and increase the possibility of making a profit with CFD trading. Some of the best possible tips for you are presented below. Use them when you trade CFDs to have a higher profit.

Always Use Stop-Loss Orders

When there is just one rule that you have to apply as you trade CFDs, it is definitely that stop-loss orders have to be utilized. A stop-loss order protects you from losing money when the market does not evolve as you want it to. You can easily limit the downside with the use of stop-loss orders so take advantage of this opportunity with every single trade you set.

Always Use The Demo Account First

Reputable CFD brokers always offer a demo account that you can use risk-free. It would be a shame not to take full advantage of this. What is particularly useful with the demo account is that you can utilize it to learn everything about CFD trading. You can familiarize yourself with the terms used and it is very easy to test your strategy before you use real money. In addition, before you use a new CFD trading strategy, one that you did not use in the past, test it on the demo account as it is always available for you, no matter how much real money trading you did in the past.

Learn All You Can About Trades

Always do your homework before you trade CFDs. Contracts for difference are very simple to understand so it is very easy to fall into a trap of confidence. You can easily end up not doing your research if some trades are successful.

Make sure that you invest only after you know exactly what every single term is and you specialize in a specific market. Being specialized helps you increase profits in the long run.

Don’t Use Leverage As A Beginner Trader

Leverage is highly advantageous for experienced traders because of the fact that it allows them to make more money with lower investments. However, leverage can also make you lose more money when a trade goes wrong. Due to this, as a beginner, it is vital that you limit the use of leverage.

Always Use A CFD Trading Strategy

No matter what trade you make, you need a suitable strategy before the position is opened. This is because you have to be prepared for all possible scenarios. Do you know what you will have to do when the underlying price goes down by 10% or when it goes up by 50%? If you do not, you do not have a CFD trading strategy. This needs to change and you have to be prepared for practically everything.

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Everyone wants to earn a big profit in the Forex market. Trading has become a very popular craze among young investors as it offers financial freedom. But making a skilled trader and earning regular profit is a very tough task.  Those who are regularly losing money at trading don’t have the skillset to deal with the market dynamics. They are taking too much risk in each trade and losing a significant portion of the investment. To survive in the most complicated investment industry, you have to learn to trade this market with a balanced trading approach.

Creating a balanced trading method is not all tough. If you can follow the basic rules mentioned in this article, you can expect to learn the art of trading without losing too much money.

Start with a practice account

The first thing that you should do as a currency trader, is to start trading with the practice account. You don’t have to think about the trading method, profit factors or the losing trades. Explore all the features of the trading platform and see how the market reacts to different data. Most of the time, it is really hard to stay calm in the demo trading environment. But the demo trading account works like a blessing and it can change your life. Once you get familiar with the basic details of the market, you should start working on your trading method.

Crafting the trading strategy by using the demo account is a super complicated task. However, you can easily avoid stress by accepting the fact, learning to trade requires time. You should never trade with a tendency to get rich quick. Analyze your demo trading results and try to bring the necessary change to your trading method. If you feel comfortable with the trading approach, you should start working on the improvement of your trading method.

Trading with real money

Before you start trading with real money, use the copy trading mt4 service and see how the professional trade. Though you can make some decent profit by using the copy trading service still you should not forget about the trading method. Based on the expert trader’s approach, try to bring some positive change to your trading method. Once you do that, you should start trading the real market. Never try to earn a big profit without learning too much about this market. Focus on the longer time frame so that you won’t have to lose most of the trades. Act smart and take logical steps in each trade so that you can earn a big profit with losing too much.

Revising your trading method

After trading the real market for a few months, you might find faults in your trading method. But this is very common for the new traders. Instead of stick to the real account, get back to the demo trading environment. Try to fix the problems associated with your trading strategy. Though it’s a little bit complicated task still you should do it with patience. Never think you will be able to curate the best trading system in the first go. With time, you slowly learn to fine-tune the trading strategy. Stop thinking about the quick profit forget the fact, trading is more like a one-time investment. You should be trading as a professional businessman so that you can easily earn a decent profit without losing too much money.

Money management

The last thing that you need to focus on is the risk management policy. You might be able to find excellent signals still you are going to lose some trades. To deal with those losing orders, you have to come up with a unique risk management plan. Think about the long term goals and try to improve your skills over some time. Take your time and push yourself to learn more about this market.

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As little as ten years ago, if you had asked the average person on the street to describe a Forex trader, they would probably have envisaged someone along the lines of Jordan Belfort, the city slicker portrayed by Leonardo DiCaprio in The Wolf of Wall Street. In the brave new world of 2018, however, things have changed.

A large part of that is through necessity – where it used to be enough to have some money tucked away in a savings account and a half decent pension plan, these things are simply not delivering any more. Interest rates are still rumbling along at low levels, pension funds are in crisis and there is a gloomy perspective that you would do as well to hide your money under the floorboards.

So the search for alternative investments is certainly a driver. The other is the technological age. The internet has taught us that plenty of things we though mysterious are actually quite simple if you only have the right app. While true to an extent, it is as easy to lose everything trading forex as it is to make some significant returns. Here are some rules every would-be forex trader needs to follow.

Rule No.1: Only fools dive in

If you think you can make a killing in forex trading without setting up the basics first, you would be better off heading to the track and putting your money on a horse.

Find yourself a trusted forex broker, set up your account and practice with it in demo mode before you go anywhere near your first real trade.

Rule No.2: Keep it simple, stupid

According to apocryphal legend, the phrase KISS strategy was originally coined by the US Navy 50 or more years ago. Whether true or false, it is the most important forex tip you will ever follow. There is a choice of hundreds of currencies that you can trade if you really want to, and hundreds more convoluted ways of doing so. But if successful and established traders find success by following the KISS strategy, there is definitely a lesson to be learned for beginners.

Rule No.3: Avoid day trading

This is a refinement on Rule No.2. The hurly burly of day trading, coupled with the chance to leap in, make a killing and leap out again might sound as exciting as a night at the casino, but it also has other similarities with the roulette wheel that make it a poor choice. The problem is, there is so little in the way of useful data to inform decisions over such a short period.

Rule No.4: Winners are always ready to lose

Some trades go well and others go wrong, that is the way it works in the currency markets. Naturally, you want more winners than losers, but an even more fundamental rule here is that whatever happens, if a trade goes as badly as it can possibly go, you need to be able to carry on to the next one. That means following the well-known two percent rule, and sticking to it no matter what.

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Silver is definitely the new gold when it comes to investing in precious metals. For much of human history, silver and gold have alternated as the currencies of choice. Gold has always been the more expensive older brother to silver while silver has been the precious metal of the common man. Silver is uniquely positioned to increase its value in the future at higher rates than gold.

Gold Isn’t the Safe Haven Anymore

Gold has traditionally been the safe haven currency. When times are bad, people would invest in gold to protect themselves from uncertainty. Like clockwork, gold prices would go up in times of crisis and go back down when things would return to normal. People knew that gold would keep its value. In fact, a common claim is that 1 ounce of gold will buy a decent men’s suit and has at any time in the last 200 years.
Things are changing. Gold is no longer the only safe haven currency. In many ways, this status is being supplanted by Bitcoin. China, a traditional devourer of gold, has embraced Bitcoin. The people have embraced it for all of what it offers and more. The additional benefits of anonymity and the ability to easily transfer it has made it quite popular. The Chinese government is not altogether happy about the rise of Bitcoin, but it is what it is.
It’s really difficult to foresee what will happen in the next economic crisis. We do know that more people will seek out car title loans completely online. We do know that more people will apply for public assistance. We do know that gold and silver will hold their value, but it’s not clear if gold will increase its value in response to the crisis.

Silver Is More Accessible

While gold is having its status as a safe haven supplanted, silver is also replacing it as a better precious metal investment vehicle. Gold is trading at very high prices. These prices have been stagnant for several years at a relatively high level. These high and stagnant prices mean that gold is not very accessible.

Silver is just more price accessible. People can make a small investment in silver at its current price level and still see a good return on their investment. On the other hand, that same small investment in gold would yield them a few grams of gold that is bought at a premium and sold at an inferior price. This results in a much lower potential return.

Silver Has Upside

Price accessibility shouldn’t be the only reason to make an investment. It just makes it easier. The real reason to invest in silver is that it has upside. There are three major factors behind this upside.

1. It’s an industrial metal. It’s widely used in industry for a myriad of different processes and products. This creates a steady demand for the metal and a pricing support level. As supply decreases, the prices will rise due to its industrial demand.
2. Silver is a jewelry metal. It has very nice aesthetic qualities. It’s beautiful and can be fashioned into a variety of jewelry.
3. It’s a traditional currency. It’s been used as a coin for centuries all over the world. It has recognized value. Its coins have stood the test of time. People understand that silver represents money and there is a continual demand for silver coins.

It’s clear that silver should be the go-to precious metal for anyone looking to invest in precious metals going forward. Silver has the upside and the price accessibility to make it a champion.

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