How A Demo Account Can Make You A Successful Trader On Olymp Trade

A demo account is a perfect opportunity to hone your skills as a trader, especially when it operates in live markets like live trading accounts. Olymp Trade prides itself on supplying everything a person needs to become the prosperous trader they want to be. A full educational suite awaits every investor. However, as beneficial as learning tools can be practicing what you have learned is infinitely more important. Becoming a successful trader requires more than studying.

Olymp Trade’s demo accounts work seamlessly in both forex and digital options markets. Traders new and experienced use their demo accounts to practice all aspects of trading. There are several components to being a prosperous trader including analysis, trading and money management strategies, and a trading journal.  

What is a demo account?

A demo account is the perfect user-friendly environment to practice your strategies and analysis. This account trades exactly like the live account, however, instead of using real money the account trades Demo Dollars.

Olymp Trade’s free demo account allows traders to test their knowledge in live markets in real-time through a desktop interface or the mobile app. The best preparation for newcomers looking to make a profit is learning to use indicators, trading tactics, and money management strategies in live markets.
 

To start each trader has 10,000 Olymp Trade Demo Dollars which can be refilled an unlimited number of times. The feeling of making an investment into a live market based on your own analysis and following your chosen strategy is like nothing else.

Why use a demo account?

The ability to trade different assets with up to date quotes and accurate calculation of the trade payouts make this demo trading experience realistic, without requiring a minimum deposit. Experienced traders agree practicing in live markets like on the Olymp Trade demo platform is invaluable.

There are many emotions involved in live trading. Learning to control urges, reactions, and sentiments is a crucial part of becoming a successful trader. Olymp Trade provides the exact same trading experience through its demo options and forex platforms as it does for live accounts. The only difference being whether real or demo money is used to execute trades.

Taking advantage of this account allows traders to become more confident in their strategies and abilities. Finding a strategy that works for you and your goals is of the utmost importance. Knowing it inside and out, understanding the indicators, and timing are crucial elements of using any strategy beneficially.

 

How to test your strategy on a demo account

There are several strategies to choose from, all of them have their advantages and shortcomings. Being knowledgeable of both sides will help you avoid missteps while trading. Olymp Trade provides a plethora of information around different strategies in their educational suite and YouTube channel. With 72 assets (currency pairs, stocks, indices, commodities, and cryptocurrencies) to trade, understanding the markets and how to best operate within them is essential.

Choose a strategy to follow and learn how it works. For example, the Relative Strength Law is an options trading strategy that depends on the RSI (Relative Strength Index). The objective is to make trades that capitalize on trend reversals. This indicator which graphically shows when an asset has increased or declined dramatically and is ripe for a reversal. It generates 3 key signals – overbought, oversold, and divergence.

Take a look at the purple line under the NASDAQ chart. This is the RSI signal line.

The RSI presents traders with trading signals. When the line rises above 70 and crosses back down, traders should predict the price of the asset will fall because it is overbought or overvalued. Conversely, if the line falls below 30 and rises to cross the threshold, traders should predict a reversal upward.

When to make the switch

Practice makes prepared since there is little perfection in trading. However, the more experienced you are with your tactics and tools are only beneficial once you use them to earn money. There is no set amount of time before a new trader is ready. It is commonly recommended that new traders spend three weeks practicing with their strategy before beginning to trade with real money.

Once you start trading within your real accounts, your demo account is still a great tool if you desire to master a new strategy. Successful VIP account holders who receive higher percentages, risk-free trades, and exclusive strategies also continue utilizing their demo accounts.

Having taken the time to comprehend and practice the ins and outs of your chosen tactics will help reduce your mistakes and increase your profits. A trader’s familiarity with the tools, techniques, and markets are the ultimate protection from making poor decisions and losing money. Fewer unsuccessful trades makes for a wonderful trade ratio and in the end higher profits.

Conclusion

Taking time to become well acquainted with a new trading platform, skills, and strategies can make an immense difference in your success as a trader. Olymp Trade provides you with all of the tools necessary to learn, practice, and earn. The desire to make trading accessible to all has to lead them to this point, and you should take full advantage of it. Become the trader you want to be. Start today.