The Common Excuses to Skip the Binary Options Demo
Binary Options Demo Trading
by Signe J. Petersen New
If you are new to binary options trading, we heartily recommend that you start off with demo trading. This is an opportunity that some binary brokers offer to use their trading platform free of charge.
This will enable you to try out binary options trading entirely free of charge and without any risk. It is a great way to learn the ropes!
However, many novices choose to skip this part of their binary options education. Here are some common excuses to skip the binary options demo trading:
1. You canít make any money
This is of course true. When trading in demo mode, you are only investing pretend money. You canít win any kind of a return; you are only giving the trading platform a test run.
But the point here is that you are making an investment in the future. Be patient. Sure, you wonít make any money in demo trading, but the many lessons you learn will enable you to score big in the future.
2. You risk missing out on winning trades
It might be frustrating to make a great trade in demo trading and receive only pretend credits in return for your good prediction. But why not focus on the many losing trades you will also avoid the consequences of?
The vast majority of traders will lose many early trades. It stands to reason; of course youíre not going to trade like a master right away. Rather than missing out on winning trades, you are much more likely to get rookie mistakes out of the way free of charge with demo trading.
3. Nothing can replicate the ďreal thingĒ
It is true that the emotions involved in actually putting your own hard-earned money on the line will make the decision-making process different in demo trading and in real trading. Your pulse will pump harder; there will be more adrenaline, and a greater rush. These are also factors traders need to learn about, and you canít do that with demo trading.
None the less, getting accustomed to the trading platform, familiarizing yourself with the environment and having some fun with trading will make you more relaxed when itís time for the real deal. Demo trading is not the same as the ďreal thing,Ē but itís close enough to be a good and very helpful preparation.
4. I can learn binary trading by studying books and articles
You can learn a lot of useful things regarding binary options trading from books and articles. Most binary brokers offer their members some sort of learning center. Here you can gain access to e-books, video tutorials and other very helpful materials. This is a great way to start your binary options education.
But the things you can pick up in the learning center are not the same as the lessons available in demo trading. You will be able to learn about technical analysis, about how to read price charts, about candle stick formations and other great things. You can study strategies, find out about high risk and low risk trading, learn about different types of assets, different types of binary options, and so on. You can even study advanced topics like trading on the breakout or how to be a trend follower or a swing trader.
But one thing you will not learn through this sort of study is how to actually trade. How to complete the trade you need to make in order to make money on your knowledge. The best way to do that is to use binary options demo trading. Letís say youíve picked up a lot of facts and figures from the learning center. Do you really back yourself to seamlessly put your knew knowledge into practice? Wouldnít it be better to start off easy, and see how well the lessons really sunk in without risking your hard-earned cash? Thatís what we thought.
5. I will trade signals, so I donít need to study trading
This is a fair point, but it misses the main purpose of both binary options signals and demo trading. A binary signal is a recommended trade. It tells you which asset to invest in and in which way its price is likely to move. Thatís all the information you need in order to complete a wining binary trade.
But predicting how the market will move is not what youíre supposed to learn from binary options demo trading. It teaches you how to complete trades, how the trading platform works, and how to get your timing right. These are all things you will need even if you trade on signals. Trading signals can improve your performance greatly, but you still need to know how to execute the trades they recommend for you.