News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: US 500: -0.14% FTSE 100: -0.17% Wall Street: -0.21% Germany 30: -0.22% France 40: -0.30% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/7ak6BIkvMw
  • Biden administration delays revamp of Trump's blacklist for China investments -BBG $USDCNH $SHCOMP
  • $EURUSD breakout stalled (so far) around the same spot that caught the feb top fib from the same study that caught the low in march (at the 38.2) https://t.co/ikWed0YfwE https://t.co/OfvmSW2V4S
  • The USD/CAD breakdown has stalled into lateral technical support at 1.2048/61 and the focus is on a reaction off this mark. Get your $USDCAD @MBForex here:https://t.co/LMTzDyI1df https://t.co/hD74PjjJHk
  • US Dollar Outlook: DXY Index Hammered as Treasury Yields Ebb -via @DailyFX Link to Full Analysis: https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2021/05/18/us-dollar-outlook-dxy-index-hammered-as-treasury-yields-ebb.html $USD $DXY #Trading https://t.co/2zVfDWI5Y7
  • AUD/USD attempts to retrace the decline following the update to the US Consumer Price Index (CPI) as it bounces back from the 50-Day SMA (0.7715). Get your $AUDUSD market update from @DavidJSong here:https://t.co/EIQ7utBH9A https://t.co/RcWf6JgYX5
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 87.64%, while traders in EUR/USD are at opposite extremes with 70.33%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/EhQn4EqJYE
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 0.06% Gold: -0.03% Oil - US Crude: -1.48% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/ALjM4GEwOj
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.54% 🇪🇺EUR: 0.45% 🇳🇿NZD: 0.41% 🇯🇵JPY: 0.23% 🇦🇺AUD: 0.22% 🇨🇦CAD: -0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/bgTy0ZEXoV
  • Some really great insight and compelling chart setups below. Strongly encourage taking the time to read through my colleague @JStanleyFX's latest take on #StockMarket cycles. https://t.co/erlf7M9z27
Guest Commentary: How to make your demo account a bit more real

Guest Commentary: How to make your demo account a bit more real

Yohay Elam: Forex Crunch,

A forex demo account is an excellent tool for getting familiar with trading, technical analysis, the software and more. However, a demo account has some limitations.

Among the many limitations, a demo account cannot simulate the feeling you have when you have an open trade. You will not encounter the same stress or excitement when it isn’t real money. This article focuses on another aspect: the sum of money in your demo account.

A reader recently mentioned his bitter experience with a big forex account: he had $100,000 in this account and he quickly grew it to $140,000. Very nice, but not so real. It can be easily assumed that the average retail trader doesn’t open an account with such big funds. When this reader got back to trading in his real account, the result was disastrous – the account was liquidated.

There could be many explanations apart from the emotional difference: he continued trading with bigger sums, the system didn’t work well with lower sums (that sometimes mean lower spreads) or any other reason.

But let’s focus on what you can do to encounter this limitation:

One option is to limit your account to the real amount of money you intend to deposit: By having a demo account of only $10,000, $5000 or whatever sum you genuinely intend to deposit, you will gain a better simulation of a real trade.

Another option is to trade as if the demo account is smaller: if a smaller demo account is not feasible, treat your account as if it had only the sum you intend to deposit, and measure your success according to this sum. Just ignore the rest.

You will gain these benefits:

  • The profit you will make will not blind your eyes: even if the aforementioned trader is capable of making 40% in a real account, the sudden profit of $40,000 in the demo account had a strong effect, that could trigger euphoria and over-confidence. By making $2,000 on a $5,000 account, this sensation would have been weaker.
  • Spreads would have been more real: Perhaps your system depends on making quick profits from small movements – such a system requires tight spreads, and these aren’t always available for lower sums.
  • Getting used to the real numbers: By matching the size of the demo and real accounts, there will be no room for confusion when moving to a real account: it will be unlikely that you’ll trade with higher positions. In addition, you will also be familiar with the number of dollars that every pip corresponds to. When the sums are different, you will need to take your time to adapt.

In general, a better preparation means better chances of profiting.

What do you think? How do you deal with demo accounts?

Further reading: 5 Most Predictable Currency Pairs

By Yohay Elam, ForexCrunch

Would you like to see more third-party contributors on DailyFX? For questions and comments, please send them to research@dailyfx.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES