The purpose of a demo account is to figure out how things will go in the forex market. You can conduct your own technical analysis of your stock through this account. Although, there are very less different between using real and demo accounts, but the learning purpose can be achieved easily. In this article, I am going to give you an in-depth analysis of the forex demo account.
Basis of difference:
A broker or a scam might tell you that forex world is easy to live. In reality, it isn’t so, and here you need to spend a lot of time at start to bring something in your favor. This is the reason why forex demo accounts are introduced. The idea is to secure new comers, so they can practice how things go here. The working mechanism of demo account is just like real account where you have to observe forex charts, have to watch resistance and support lines, and much more.
The only basis of the difference is the physiological factor. With having a real account, you can have been a lot better physiological impact on your stocks. Next, I am going to put a detailed spot light on the forex demo accounts.
• Technical analysis of forex demo account:
Since, you trade in the market through a broker so it’s very important that he will be supplies all the utilities that are present in the real account. This will give you a clear picture and understanding of the forex market. After getting the user name, the first step you will do is to pick up charts and start analyzing. Now, I am presenting some typical points that are needed to the charts’ analysis:
• Start with easy pairs:
Forex world deals with pairs in which you have to trade with currency pairs. Go for famous pairs like EUR/GBP or AUD/USD.
• Start analyzing trends of daily charts:
By doing this, you will comfortably conduct all the technical analysis and that too in a very short span of time.
• Downtrends and Uptrends:
Keeping an eye on these trends will help you in understanding the basics.
• Construct graphical analysis:
After reading out the basic figures from the chart, it’s time now to give them a graphical look. Doing this will help you in understanding.
• Save your results:
After doing all the analysis, you have to save all the data in a documented form so it can be utilized in the future.