What is actually different between virtual trading and live trading?
If you ask your trader friends, the answer can be very diverse. The point is that there are differences in our feelings in treating virtual money with real money. It will ultimately differentiate our decision making in trading.
Well, if it’s clearly different, then what’s the point of us practicing virtually? Practicing virtually first before jumping into live forex is basically very necessary for novice traders. You can practice understanding the market, understanding indicators and other technical matters.
According to My Trading Skills, the traders would be more expedient to use the virtual trading, which allows them to check the performance of their trading system as soon as possible.
Novice traders are impatient to practice using a virtual account
The problem is, many new traders feel impatient to practice using a virtual account. They immediately jumped into a live account because they think practicing with a virtual account does not have significant benefits.
Additionally, you can use the amount of your virtual money just as much as your deposit plan later. For example, you plan to deposit $ 1,000, then you can use only that amount of virtual money. Besides learning trading analysis, you will also learn to manage margins. Many trader friends who get a lot of profits in virtual trading but lose in live trading. This is mostly caused because when using virtual, they tend to not use margin limitations. Usually, brokers give virtual money in relatively large amounts. Thus, if you leave a floating position, the existing margin will be sufficient to hold the floating up to hundreds or even thousands of pips. Now, once you go live with a smaller amount of deposit, the habit of leaving this floating position if still maintained, of course, will quickly invite the MC.
Read more : Why Do You Experience A Warning Margin Call?
