Simulated foreign exchange trading usually involves risk-free foreign exchange transactions using the simulated accounts of foreign exchange trading software before foreign exchange transactions. It is a method often used by investors who have just started to familiarize themselves with foreign exchange trading software and the foreign exchange market.

How to simulate foreign exchange for novices

The enthusiasm of the foreign exchange market has attracted many investors to join, and many masters have also come from novices, from mixed profits and losses to long-term stable profits.

If you want to really invest in the foreign exchange market, you must experience the simulated trading stage. Although simulated trading is not really trading with real money, it can theoretically allow investors to experience market changes firsthand, and veterans can also test new strategies and technical analysis. So simulation trading should be done well.

How to simulate foreign exchange for novices

The simulated foreign exchange trading is actually the use of the simulated account of the foreign exchange trading software to conduct risk-free foreign exchange transactions before foreign exchange transactions. It is a method often used when just beginning to learn foreign exchange trading software and familiar with the foreign exchange market. The most widely used software is mt4 simulation software. The most essential difference between it and the real is the difference in funds, and other market conditions and trends are the same.

Therefore, everyone can open a real account with confidence after learning on the demo account, but why do some people make a profit on the demo account while opening a real account but lose? So some people wonder if the trends of the two platforms are different? In fact, it’s not like this. It’s because of the funds. Real accounts are our own real money, while virtual accounts are some virtual money. So everyone will not treat it with the same mentality when playing. Sometimes they are afraid of their hands. One second of fear of feet can cause a lot of losses.

  1. Avoid periods of frequent exchange rate changes
    It is difficult for beginners to grasp the rapidly changing market. For example, Sunday evening in New York time, which is also Monday morning in the Asian time zone, when the exchange rate is relatively untracked and unpredictable. Although simulated trading does not cost real money, it is difficult to find rules in these chaotic periods, which is not conducive to the summary of experience.
  2. Trade at the same time
    This helps to understand the trend of various currencies, because each currency has different changes at different times every day, and it is easier to find out the trend characteristics of a particular currency with regular operation. At the beginning and end of daily trading, you should read various news on the market and watch currency charts to help you make the right trading strategy.
  3. Focus on one or two currency transactions
    You should first focus on one or two currencies for in-depth research to conduct transactions, and analyze its relationship with other currencies. There is a certain interactive relationship between various currencies, and the cross exchange rate is also closely related to other currency combinations containing US dollars. relationship.

The role of foreign exchange simulation trading is to understand how to profit and develop your own profit-making operation method, so just looking at the profitable results in the transaction is not enough. We must also learn to summarize, be prepared for real transactions, and not fight unprepared battles to win every battle.
A little experience sharing the simulation of foreign exchange

A little experience sharing the simulation of foreign exchange

  1. Learn to control risks. When a risk comes, you should first identify its mid-to-long-term trend, follow the beat, set the price of entry and exit, and control your position in accordance with your own operating habits. When risks come, we’d better close the position and leave the market, which is the safest way. If you feel that your operation is relatively good, you must identify the market trend, do short-term operations, and quickly leave the market with profits.
  2. Comply with foreign exchange market discipline. In the simulated foreign exchange and foreign exchange market, we must abide by market rules, otherwise we will suffer serious losses. Be sure to operate in accordance with the pre-set take-profit (loss) price, and do not change it at will. If there are signs of up and down breakthroughs, you can raise the take-profit (loss) point.
  3. Choose the right currency pair. Because everyone has different habits, you can choose the currency that suits your operation according to your own style. For example: choose one of the three European currencies to operate, do not choose multiple arm guards to enter the market at the same time.
  4. Combine short, medium and long lines. In foreign exchange operations, we all know that there are several operation methods such as long-term operations, mid-term operations, and short-term operations. Therefore, we must pay attention to several operation methods during the operation. Of course, the most ideal must be these three trading methods. We can all try in the process of foreign exchange trading.
  5. Do not operate frequently. In the process of foreign exchange trading, we need to restrain ourselves and not allow ourselves to make frequent orders, so that we will lose more. What we need to be clear is that we need to wait for opportunities in the foreign exchange market, and do as little as possible when the foreign exchange market is uncertain. Spend more time on our basic knowledge and foreign exchange analysis skills.