9. Demo account to hone your skills
February 8. Today I’m going to use my demo account for the first time ever. I had gone to my broker’s website, clicked the chat box in the lower right-hand corner and asked her to set up a demo account for me. She did and gave me a special login username & password.
The username & password are very easy to memorize. Whenever I want to open my demo account, I go to videforex.com and login using my new username & password. When I want to trade using my own money, I will use my original username & password.
I’m going to trade with my demo account until I have at least 50 trades in a row with a success rate of over 70%. After that I’ll trade my own money. Whenever I start using it, I’ll make sure I read “DEMO account” as shown in the image on the right above.
I was going to watch Milly live today and trade just like she is trading on her own personal account. However, Milly is sick today.
I‘ll be writing the 10 pairs one underneath the other. Then I’ll go to Currency Strength Meter and find which of those pairs have a currency where one is at least two bars above the other one.
For example, in this example the corresponding pair is AUDUSD. The first currency is stronger than the second. Therefore this suggests a call (buy) is the best action. Combine that with the fact that Hourglass also suggests a call and I have 4 points. In the image on the right is close to the bottom Bollinger band for 0.5 points. To the left you see the upward trend line which gives me another 0.5 points. Now I have 5 points. So, I will take the trade.
Remember, patience is a necessary virtue of a successful forex trader. So, if that call had been a put, I would have waited until it became a call. Then I would have refreshed the Currency Strength Meter and looked the other indicators to see if I could get 5 points.
Lost I lost my first trade on my own. I was not thinking clearly enough.
That means I’m not allowing myself to trade for the rest of the day. Next time I’ll go to that URL blog post and follow it closely. I filled in a bit on that post so that I’ll never make those stupid mistakes again!
This evening I followed an education who did 2 minute trades. It was a disaster. I started with 749USD in my demo account and ended up with 722USD in my demo account. I had trouble following what the educator was doing. I didn’t even write down all of the trades for my spreadsheet. I think I’ll watch more of the recorded sessions so that I can get used to styles of the various educators.
I’m sure glad I started with a demo account. I will not trade with real money until I’ve made 50 trades in a row with a success rate of over 70%.