eToro – Forex Trading Forum

[Tropezienne]

I love my eToro practice account. It has been the best learning tool for me. My usage of it has changed as I have changed as a novice trader. I used to be pretty free and easy with my virtual money. I was not too worried if I lost any of it. I would, I have to admit, ’play’ on certain parts of the platform, just to see what happened. My virtual 2000 dollars hit a low of about 820 dollars - and then I felt challenged and decided to trade back up to 2000.

Now I treat my practice account as though it actually contains real money - this change in my attitude is perhaps a sign of my development as a trader and an increase in my understanding of forex. I’ve not yet regained my 2000 dollar target - but I am up to almost 1400 dollars.

For me, a practice account is a great thing to have - and I imagine that even experienced traders can use a practice account to experiment from time to time.

How have you used your practice account?

Julie

http://who-gives-a-forex.blogspot.com/

[Tropezienne]

There is an argument that says there are certain pitfalls to learning forex on a practice account. It says that to trade ‘virtual’ money means that risk is non-existent and that it is like trading in a make-believe world. This gives a forex novice a false sense of security - especially if he or she makes significant virtual gains from uncalculated risks. This false confidence may encourage them to open a real account on which they will in all likelihood lose a large amount of money.

Well, that premise seems just a little bit patronising to me. I think that most people who do well on a practice account have learned the hard way - by seeing their virtual 2000 dollars reduced in a short time by 50% or more;

I suppose the key is never to open a position on a practice account that you would not open on a real account. Treat you practice account and your virtual funds with patience, awareness and discipline.

Have you switched to a real account after learning on a practice account? How did you find the change? How did it affect your trading practice ?

Julie

http://who-gives-a-forex.blogspot.com/