5 Ways a Demo Trading Account can help you Become a Better Trader

No matter how much material you read on Forex trading, there’s still a lot you don’t know. People with greater knowledge than you have found themselves stumbling to find a strong foothold in the market. It all boils down to this: knowledge is power, but experience fuels that power. If you want to solidify your grasp of Forex trading in Thailand, what you need is a demo account that will equip you with the necessary skills required to succeed in the space.

What is a demo account?

It’s a ‘pretend’ account that looks and works exactly like the real thing. However, you’ll neither lose nor make any money. To put it simply, it’s analogous to taking a test drive, wherein you test out the area, find out how it works, determine if you have what it takes and then move on to the live account.

Here’s how a Forex demo can strengthen your prospects and enhance your trading performance when you make it to the live scene:

1)    Check if you’re compatible

Most get into Forex trading without even knowing if it’s something they’d like to do. There are some who might enjoy it, while others who find that it doesn’t suit their preferences or lifestyle. A demo account is a good way to check your compatibility without risking any money.

2)    Testing out new strategies

Now’s the time you can find out if all the Forex trading strategies that others claim are good, actually do work. Create a list of strategies to try out, and employ them one by one. Eventually, you’ll find a few you’ve had considerable success with and earmark those for use in real trading.

3)    Learn greater emotion management

One of the biggest setbacks traders face is when they’re unable to keep their emotions in check, and end up taking rash decisions that harm their trading account. With demo trading, Forex traders can learn to cope with their emotions such as fear, greed, and anxiety, thus building a neutral psychological mindset that’s necessary to succeed in the market.

4)    Find the right broker

In Thailand, there’s no dearth of online brokers, making it problematic for newbies to pick the right one. Through a Forex demo, traders can get an insight into what the broker has on offer, figure out if the platform is suitable for their requirements, and narrow down on a broker that’s apt for them.

5)    Enhance money management techniques

To prevent oneself from making irrational decisions that could result in massive losses, practicing money management techniques can give one greater control over their finances. A demo account that provides traders an opportunity to work with real exchange rate movements helps traders witness how such techniques translate into success in the field.

Whether you’re a newcomer or already have previous experience in trading, remember, it’s never too late to go back to square one and learn with a Forex demo account. Open a FREE account with WesternFX today, one of the best Forex brokers in Thailand and trade Forex the right way!

Top Risks with Forex Trading and How to Avoid Them

The Forex business has become one of the most lucrative sites for profit making in the present day. It is almost a way to make money from the comfort of one’s own home and without too many other pre-requisites. With transactions amounting to more than five trillion dollars flowing through this medium, it is the largest and most liquid trading platform at present. With the potential for losses wider than one would believe here, it is important for a beginner foraying into this field to get informed about the risk involved in this profession. 

Risks with Forex

It is often advertised that Forex trading is easy and fast, allowing one to make money with nothing more than an internet connection and a computer. However, there are many solid decisions one needs to take in this area to effectively minimize potential for losses. This includes finding the right broker, installing the right trading platform and many more. 

One thing to understand with respect to the currencies exchange is that it is a decentralized market. As a result, there is no standard pricing mechanism, and varying prices could be offered by different dealers. One would need to make the right deals with the right participants to bring down the chances of higher prices and loss. 

In the following paragraphs, we’re going to be looking at this and other risks associated with this platform:

Risk 1 – Being cheated by a dealer

What the dealers do, as mentioned above, may not be unlawful or considered a scam. However, it would still lead to the exploitation of less informed players in the market. These dealers would get their clients to make margin trades and set stop orders in a manner that favors profit making for them. 

Risk 2 – Using excessive leverage

Leverage is a crucial element for profit making in online trading. Different brokers allow varying scales of leverage for their clients, ranging from 100 to as figures as high as 500. Leverage is important because if applied in the right manner, it could magnify a trader’s profit scales. However, at the same time, if not done so, it could also levy amplified losses in a proportionate measure. As a result, one of the major risks with Forex trading in Thailand is the use of excessive leverage.

Risk 3 – Being scammed by a broker

One thing that is widely known is the presence of scammers masquerading as legitimate brokers in this industry. One would need to be very cautious when making a choice for their brokerage. Check for the regulatory oversight that the broker comes under and its validity in this regard. 

Conclusion

With the Forex trading business, there is ample room for risks of many sorts. There are no shortcuts to avoiding losses in this arena, and one would need to test the waters and gain experience before knowing the ins and outs of this game. If you need help in this regard, then ally with a reputed brokerage firm. WesternFX provides online trading services for clients in Thailand and multiple other countries. We can give you the tools you need to escalate your skills and make more profits!