Demo MT4 Account
Before beginners can begin trading the live market, a beginner trader should look for a trading practice trade account which is oftenly known as a demo trading account. This demo trade account practice trading account is provided for free by brokers & therefore also referred to as free demo trading account - Demo MT4 Practice Account.
This free demo account for beginners is provided to beginner traders for purposes of practicing their strategies and gold techniques as they learn how to trade the online market. This free practice account for beginners also allows the beginner traders to practice on the trading platform software that they will be using for online trading that is known as MetaTrader 4 software until they become familiar with its operation, as well as the execution of transactions using this MT4 software and how to navigate the MT4 platform and the charts that are within the MT4 platform.
Demo MT4 Account Demo Practice Account - To start learning trading using gold trading demo online practice accounts, novice traders need to begin with a demo trading account, these demo trade accounts are similar to the real accounts in terms of the actual software as well as execution conditions of orders, the only difference is that for a demo trading account - a trader does not need to deposit any money when it comes to the demo trade account. The money used in the beginners demo trading account is virtual cash, and it is not real money: beginners practice account is used to simulate real money trading without risking money.
Online Practice Demo Account - Learn Software with a Free Practice Demo Account
The trading demo trade account will have a virtual balance of $5,000 or $10,000 or $50,000 or $100,000 & a demo trader can choose the amount of capital they want to practice trade with. The demo trading account example pictured above the virtual balance of $100, 000 as cited above on the MT4 Transaction Window & a beginner trade can use this $100,000 dollars virtual balance for practice trading - Demo MetaTrader 4 Account Demo Practice Account.
Remember the trading Demo Practice trading account is a free account and because learning might take some time, trading brokers provide this as a way for beginner traders to study xauusd trading & start without depositing real money.
Beginner traders should also look for an unlimited time practice account to ensure that they get enough practice time until they are ready to invest in the live trading market.
The main purpose of this trading demo account is to allow to beginners access the real market as other traders who participate in the online market with real cash, only that the main difference is that funds used in a practice account are virtual funds which are risk free, but everything else, from the platform, trading order execution, gold trading spreads & price movement are the same as of those traders transacting the live trading market.
As Gold popularity grows and more financial instruments are introduced to be traded, these demo trading accounts can also be used to practice online trading on these new added financial instruments.
Commodities: GOLD & SILVER
Futures: CORN, WHEAT, SBEAN
Energies: NGAS, OIL
Stock Indices: DOW, NSDQ, SP, NK,DAX, FTSE, SMI, ESX50 and CAC
The financial instruments that are also gaining popularity in the online spot market, can now also be traded on the online trading demo trade account demo practice trading account - Demo MetaTrader 4 Practice Account. These financial instruments are popular because they are used to hedge investment trades as well as provide additional financial instruments that can be traded online so as to diversify the portfolio of investors and online traders. These financial instruments are traded like this; when there is not enough liquidity or volatility in market then investors and online traders look for this liquidity and volatility in these alternative financial instruments. The popularity of these financial instruments also means that these financial instruments have also developed trends that can be analyzed.
This type of demo account is meant to serve the following purposes in gold trading:
Learn Platform
The first thing which a demo account is supposed to do or is supposed to be used for is to study the ins and out of the trading software that your broker uses, a good example of a trading platform is MT4 software. Once you register for a demo practice trade account with a broker & download their platform software, you will need to train on how to trade using the trading platform you have downloaded. Learning how to use and operate this trading software is especially crucial for beginners with zero knowledge of the trading market. If a beginner were to begin directly by investing with real money without knowing the working of a software they can easily make a mistake by pressing the wrong button or opening the wrong gold trade order by mistake without even knowing.
Learn Order Execution and Setting Trade Orders
Beginner Traders will not know the difference between a limit order and a stop order, beginner traders will also not know when to buy or sell or which chart setup to buy & which chart setup to sell, therefore, the need to start with a practice practice trade account until the time that they get to know when to buy and when to sell.
Test Your System and Strategies
A demo practice trading account is a perfect ground for testing your system & strategies, As a beginner trader the first thing you need to have before you start trading online is a trading system that is based on trading strategies. After coming up with your system you will use this beginners demo account to back test it or what was anciently referred to as paper trading, this demo account is similar to the paper method only that it doesn't use pen & paper but the technique of back testing is what is similar to that of paper method.
Until the time you begin winning more on your practice trades only then - you can then consider to invest in your real trading account. Starting with $1,000 dollars or more is recommended, it is best to save your money upto at least $1,000 dollars that way you have a fair chance of succeeding as you'll not make the number 1 mistake in gold trading: under capitalization. In fact the more well capitalized your account is the better, you can begin with $5,000, $20,000 or $50,000 - just make sure you've enough capital to begin trading with.
Ask yourself why most free practice demo accounts are set at account balances of $10,000 or $50,000 because the more well capitalized a trading account is better the chances to succeed, because these accounts will not be undercapitalized.
Trading Practice
This demo account - free practice account is a type of trading account offered by online brokers as a way to introduce beginners to their software platform and methods of orders execution. This where you practice until the time you can make profits on this demo account and then afterwards you can trade the live trading market.
The free demo account for beginners is a great way to get started and learn the specifics of online trading with no risk of losing money & at the same time you can get to know the execution techniques of orders and test various strategies for free.
Using a beginners demo practice account is the best way to gain knowledge on how the market works & to help you in the understanding of the actual gold process. A good software platform to use for opening a demo account and trade with is the MetaTrader 4 software which is simple to learn, the learn gold trading MT4 platform tutorial section which also includes the how to use MT4 demo account tutorial is also provided here on this Learn Gold Tutorial Website, under the right menu you might want to read the how to use MT4 platform tutorial before opening a trading platform.
By using demo trade accounts, a beginner has the opportunity to learn executing trade transactions without risking their own funds. The broker will set up a demo practice account for you for free so that you can test their software, their execution - execution is considered by most investors and traders as an important aspect when it comes to choosing a trading broker, No Re-quotes Execution Policy is the best execution technique of orders, many gold order requotes will mean sometimes investors not getting their orders executed, or if the orders are executed/filled they'll be executed at a price that isn't better than the one previously quoted plus the fact most online traders just hate being requoted. Imagine trying to place a order instead of the order getting executed instantly you get re-quoted, then you have to put another confirmation order, if you get requoted 5 times you will have to place 5 other confirmation orders, plus the original order. A No-Requotes Policy for gold order execution is the best option to select from.
There are many advantages of using an online demo trading account, the biggest advantage is having the time to figure-out how each platform works, how to navigate the platform & know what each function does. On top of that you can use the online demo account to test your strategies to see if they work before switching to the real trading market.
Many beginner traders find that by putting the knowledge on this learn gold site to work on a free practice account, they get a clearer grasp of what to look for before, during and after each transaction. These learn gold lessons are aimed to teach every aspect of online trading, most beginners just learn about; a trading system, how to generate gold trading signals & then begin investing on the real market, well it takes these beginners less than a month to lose their invested funds. After all these novice traders did not study about gold money management lessons under gold trading key concepts tutorials, neither did they study about gold trading draw-down and maximum draw-down, & the best of them all LEVERAGE. If you have no idea what gold leverage is do not open a real account til you do.
Even the experienced investors and traders also will test the demo trading accounts of other brokers, especially if they want to change their broker. This is done so as to help them get to know more about the execution of the new trading broker and also study the new software of the new trading broker. Nowadays most traders just learn one gold trading platform, MetaTrader 4 software, which is provided for download by all brokers for free so when a trader moves from one broker to another they'll still use the same gold trading platform without need of learning a new trading software all over again.
The purpose of trading demo account is to familiarize the gold beginner trader with the various methods of analyzing chart price movements and orders execution - it provides beginner traders with examples of how the market works without the risk of losing cash. A beginner trader can also learn how to execute orders & how to analyze charts and when & how to open a transaction, how to read a trading quote, how to navigate price trading charts so that they master the various trading platform transactions before progressing to trade the live trading market.
Looking at the chart below a beginner trader would not know how to trade or execute a trade if they were to start investing immediately. A beginner trader would almost certainly lose their money because they will not know what they will be doing. This is why all beginner traders start with a demo trading account provided for by their broker for free so as to practice on the trading platform software risk free using a practice online demo account before opening a live account.
Practice Account - Learn Charts using a Practice Demo
Learning the broker’s software
Because different types of online trading platforms are provided to investors like the ones listed on this page; all brokers will have demonstration accounts with which a beginner trader can use to learn the new platform and about the various tools provided by the broker on the trading platform.
Web Based gold Platform - traders can learn this platform with a Practice Free Practice Demo Account
Looking at the above examples - a trader would require to familiarize themselves this new trading platform afresh before starting to use this new trading software - a trader would then open demo trade account & use it to learn the new trading software.
