How to open Demo account of XM Trading (XM Global)?
Open XM Demo Trading Account today
XM offers its traders free demo trading accounts.
To open a demo trading account of XM, go to the registration page.
The estimated time to complete your registration is 2 Minutes.
Having a demo account means the following:
- You will trade on the live market.
- It is for free, and you can use it as long as you want.
- It simulates real trading conditions, but does not expose you to risk.
- You trade with virtual currency – with no danger of losing real money.
- You can test all possible trading strategies as many times as you want.
- You can learn to use a trading platform at your own pace.
- You can learn to read charts, follow market trends, open and close orders.
Demo trading only exposes you to virtual risk, so it does not really give you the feel of proper risk management. Dealing with your emotions is as important as dealing with your money. And a virtual world doesn’t involve real emotions to the full.
So how can you learn to keep emotions out of your trading decisions?
Open a demo account, use it to test the basics, and after a while open a real trading account fit for beginners with smallest minimum deposit and flexible leverage.
And now you may ask yourself: when is the best time to switch from demo to real? A reasonable question to which there is no definitive answer. Forex trading is a learning process the duration of which depends on the individual. Besides, it also depends on your investment needs, expectations, and the time you dedicate to it.
At XM, you can keep your demo account parallel to your trading account for an unlimited time. You have the freedom to use your demo account to test strategies, and then use the most effective ones on your real account.
Key factors for successful foreign exchange trading
The success of the trader depends on himself. And it should be remembered that there is no immediate way to succeed in this world. There is no shortcut to freedom. Everything requires struggle and sacrifice, and a person should be completely immersed in what he does. Becoming a successful trader is not easy, but it is possible. Earning profits is a demonstration of the success of traders, in which strong decisions are the key.
Outside the trading market, there are some important matters that every trader should know. Let us analyze it in detail.
1. No more pending orders without calculation
Generally speaking, the main goal of any trader is to make a profit and increase wealth by taking advantage of price fluctuations. Some famous traders such as George Soros, Goldman Sachs, JP Morgan Chase, and its allies have caused price fluctuations in the foreign exchange market. We call it a market maker (MM). Market traders have a lot of capital, they can make the foreign exchange market fluctuate, and if they want, they can even shake the economic stability of some countries. Compared with them, retail traders with limited capital are like fish and sharks.
Due to panic, traders’ pending orders may be closed by the stop loss point or even exit the market by the stop loss.
When a market maker establishes a short position, the price begins to fluctuate steadily upwards, after a period of time, there will be violent fluctuations, and then the price fluctuations will slowly slow down. This process is called “anticlimax”. This means that market makers stop buying because they think the price is too high. In this way, prices will consolidate and the market will enter a period of flat. From that moment on, market makers waited for important economic news that would allow them to increase their position momentum (continue to place new buy orders, or place sell orders, or do nothing).
When news is released, market opportunities will fluctuate rapidly, and prices will rise or fall rapidly. This is caused by market makers. Usually, retail traders fall into this situation and start trading hastily. They are afraid of losing opportunities. Due to panic, traders’ pending orders may be closed by the stop loss point or even exit the market by the stop loss.
Start with XM’s Demo trading account
2. It is impossible to completely determine the quotations of the foreign exchange market
There is no financial analysis method that can accurately predict price fluctuations. This situation occurs because the volatility of the foreign exchange market is caused by people’s psychology. Wanting to make a profit, worrying about losses, panic, and other feelings and emotions affect the volatility of the foreign exchange market. As the saying goes: The depth of the sea can be seen, but who can know the human heart? The same is true in the foreign exchange market. To be sure that anything is impossible, this is the second key factor you should keep in mind.
However, the foreign exchange market also has certain rules to follow. Price fluctuations often recur, which helps traders understand the foreign exchange market and create some tools that can be used for trading analysis. As a result, some popular technical analysis methods and tools, such as Elliott wave analysis, Gartley pattern analysis, candlestick pattern analysis, Gann analysis, various foreign exchange trading advisors and indicators, appeared.
3. Be humble, think twice before acting
As we have already mentioned, the market is difficult to predict. This means that trading requires some humility. Traders should respect the wishes of the market. He should have a humble mind, so that he can manage the situation when the market fluctuates inconsistently with his analysis and trading strategy.
A trader with this strategy in the foreign exchange market is like an explorer holding a GPS device alone in the forest. But at a certain moment, his GPS device will be powered off and he will stray into the wrong direction. When the explorer loses his way, he tries to remember his way, realize his mistakes, and make decisions that help him achieve his goals. The same is true in foreign exchange trading. If you have a humble mind, stop and think for a while, and review all the mistakes you have made, it will help you achieve your trading goals.
4. Be patient when trading
Humility helps you stay calm in any situation. Professional traders are those who have the patience to wait for the foreign exchange market to appear in a situation that corresponds to their trading strategy. Only in this way can they have the opportunity to make a profit. Patience is required from the time of placing an order to closing a position. But in the middle of the transaction is more important, traders need to observe price fluctuations in any direction, and remain calm so that it is not too early or too long to make a liquidation action.
A professional trader, Nial Fuller, said that as a professional trader, the most appropriate animal to describe himself is a crocodile. Crocodiles have survived in this world for millions of years. Crocodiles do not spend time hunting small prey. It will save energy for hunting big prey, be patient, and wait for a long time. But as long as the prey enters its attack range, the crocodile will grab it without hesitation. Of course, the predation of crocodiles is not always successful. However, this animal has the patience to continue doing such things and eventually achieve its desired goals.
Discipline can help traders stay calm and not open and close every order under the emotion of hesitation and fear.
5. Be self-disciplined and have a consistent trading plan
One way to control the uncertainty in the foreign exchange market is to strictly demand oneself. When it is impossible to predict market fluctuations, professional traders will protect their accounts through strict self-discipline. They will create a trading plan and will not break their plan no matter what the market conditions.
Self-discipline helps traders keep a cool head, and place orders and close positions without melancholy and timidity. He believes in the profitability of his trading strategy. Moreover, even when the market fluctuates in the opposite direction, traders will still remain calm and respect the wishes of the market. This situation is not surprising to the trader, because he has carefully considered the worst situation that can occur when trading.
6. Remember that the foreign exchange market is neutral
The foreign exchange market is neutral. Only traders will give each price fluctuation a special meaning. They can explain what is happening in the foreign exchange market based on the experience and knowledge they have learned. However, the real foreign exchange market is actually neutral.
For novices, there is nothing more than a forex chart with colored bars that fluctuate up and down. When a trader has a certain experience, these fluctuations become a signal feature with special meaning that can be used in his trading strategy. If a trader forgets the uncertainty of these signal characteristics and is confident in its meaning, when the market has the volatility that contradicts its plan, it will fall into a trap.
However, by understanding and accepting the fact that the foreign exchange market is neutral, professional traders will not be disturbed by their confidence. He will trade according to his strategy and plan, but he will also know that his trading may have undesirable results.
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