What is Forex “Trade Practice”?
Forex trade practice is to use forex practice software to make simulated trades (simulation trades) before making forex trades with actual trading funds.
By practicing trading, you can check whether your forex trading methods (entry, settlement, etc.) are superior or not, and whether you can make decisions and execute orders according to the trading rules.
You can also practice trading to some extent through virtual trading (demo trading) using the trading tools provided by FX companies or MT4.
However, such demo trading requires “a real day’s time” to practice a day’s worth of trading, making practice extremely inefficient.
On the other hand, with Forex trading practice software, you can simulate a month’s worth of trading in about an hour, for example, because you can freely advance the time in the practice software.
What would normally require months of practice can be done in just a few days.
Why Practice Forex Trading?
There are a myriad of forex trading methods, and some of them have superior advantages.
Why, then, is it said that “only 10% of traders are winners” in the world of currency trading (FX)?
We believe that the reason lies mostly with the traders themselves.
Even if traders have the most advantageous trading rules in their hands, they often get upset and lose their cool in front of the real-time currency charts, have a mental breakdown, and are unable to enter or close trades according to the rules at all.
Behind the inability to act according to trading rules may be a “bad trading habit” that has become ingrained in them without their being aware of it.
Now, even if you have the mentality to deal with the foreign exchange market calmly, if your understanding of the trading rules is poor or wrong, you will not be able to take advantage and make a profit.
Maintaining calmness and mental stability, as well as a deeper understanding of trading methods and increasing your confidence level, are important for you to continue earning money in forex trading.
For this reason, it is important to carefully repeat trading practice using forex practice software.
In the world of Forex, the ability to practice trading practice well is the difference between becoming a “future winning trader” or not.
Practice in order to be able to make calm and accurate entries and settlements in the real world
In forex trading, it is necessary to calmly perform technical analysis on currency charts that actually move in real time to determine the entry timing and execute orders with trading tools according to trading rules.
In order to do this, you need to practice thoroughly and repeatedly using forex practice software in advance so that you can act correctly and naturally.
For forex traders, trade practice is like swinging and hitting & defensive practice for professional baseball players.
If you are not practicing on a regular basis, there is no way you will be able to trade well in the real world.
And it is no good if you are struggling to make decisions during real trading, with a manual of trading methods in your hand.
In the world of professional sports and craftsmanship, as a result of repeated practice in every situation that requires judgment, the body becomes able to move calmly and naturally in response to the situation in front of it.
The same is true in the world of FX trading.
Unless it is a complete system trade (automated trading), your own calm judgment and accurate execution skills are always required.
As a matter of course, you cannot see future price movements on the chart during actual trading.
You always need to make a technical analysis based on the previous price movements and decide what action to take now (sell, buy, or wait and see), while not knowing the future.
By using trading practice software, you can repeatedly practice trading decisions in a state where the future is unknown, just as you would in an actual real trade.
To acquire calm judgment and accurate execution, carefully practice trading with forex practice software.
Practice trading forex to understand the advantages of trading methods and increase your confidence in the rules
To begin with, does the trading technique you have in hand have an advantage?
If you repeatedly enter and close trades using that trading technique, will the margin in your forex account continue to grow?
If you cannot answer these questions, the first thing you need to do is to do some verification work using past charts.
You need to mark the entry and exit points on the historical charts according to the trading rules to see if the profit/loss is actually positive in total.
After that, the next thing you need to do is to confirm your superiority using forex practice software.
In a chart situation where future price movements are unknown, you will make entry and settlement decisions as if you were in the actual trading environment.
The profit/loss results you can achieve on the forex practice software are considered to be the best performance of the trading method.
In actual real trading, it is inevitable that the performance will be lower than the best profit/loss result on the practice software due to factors such as missed entries and blurred settlement decisions.
In other words, if you have a correct understanding of the best performance on the forex trading software, you will be able to make a dispassionate evaluation of the real trade results.
You will be able to objectively accept that “my total profit/loss has been poor recently, but this is because I closed too early (i.e., did not follow the rules),” and you will be able to take countermeasures to solve the problem.
In this way, as you repeatedly experience the superiority of your trading methods through the profit-and-loss results of your trading practice, you will develop a sense of trust in your trading rules.
This increased confidence will make it more difficult to make sound trade execution decisions even during periods of drawdowns, thereby increasing the stability of your daily trading.
Thus, trade practice is an important initiative for forex traders, so make good use of forex practice software to practice your trades.
Related FX Practice & Verification Software Recommendations (Standard & Free)
Related FXの練習方法。リアルトレード訓練や土日の練習方法など9記事
Term スクラッチトレード
What is Forex Practice Software?
Forex practice software is specialized software that allows you to practice and verify your forex trading using past charts.
By using forex practice software, you can improve your forex trading skills and verify your trading techniques.
In order to profit from Forex trading, it is required to repeatedly enter and close trades using superior trading techniques.
To do so, it is necessary to verify and confirm the superiority of the trading method and to practice over and over again so that you can trade according to the trading rules in real trades using actual money.
Forex practice software greatly speeds up the verification process and trade practice
Verifying past charts and practicing trades usually requires tedious work and a great deal of time.
However, using forex trading practice software that specializes in verification and trading practice can save you time and increase the speed of your trading significantly.
The Forex Practice Software allows you to practice entry and close moves with candlesticks advancing at any speed, using a charting environment similar to that of a real trade.
For example, you can fast-forward the chart when it is not a clear entry opportunity, and then carefully time your entry and close according to the trigger rules once the setup is in place.
If you miss an entry opportunity, rewind the chart and ask, “Why did I miss it?” Or was the trade rule right to forego it? You can easily rewind the chart to find out why you missed it, or whether you were right in terms of your trading rules to forgo it.
While a day’s worth of trading practice with a demo account at a forex company can take up to a day to complete, the use of forex practice software can significantly reduce that time.
Recommended FX practice software with standard & high functionality
The two standard FX practice software are “ForexTester” and “MT4 Discretionary Trade Practice-kun Premium,” both of which are recommended practice software with established reputations and a proven track record.
The latest FX practice software we recommend is “Trade Trainer,” which features a wide range of functions and lightweight operation.
Free forex practice software is also available for forex traders who just can’t afford it.
For detailed descriptions of each FX practice software and links to their official websites, please see the articles below.
Explanation FX Practice & Verification Software Recommendations (Standard & Free)
What is a Demo trade?
Demo trading is “trading with virtual funds” conducted on actual charts, also known as virtual trading.
Since no real money is used and no money is exchanged in the event of a loss, it is possible to trade forex with no risk.
The objectives of demo trading include the following.
- First, to experience the FX market with no risk.
- To practice following the trading method.
- To check if the trading style is suitable for you.
- To check the psychological impact on profits and losses.
- To familiarize yourself with the order handling of the account.
There is an opinion on the Internet that demo trading is meaningless because there is no tension because there is no money at stake.
However, trading with money when you are not sure if you can win yet is nothing but gambling.
Utilizing demo trades and trading simulations (simulated trades) is an essential process for success in trading.
Note that unlike trading with forex practice software, it takes a day’s worth of time to trade on a day’s worth of charts.
Therefore, demo trading for mere practice purposes in the early stages of your forex efforts is not recommended from a time efficiency standpoint.
Ideally, demo trading should be done just prior to real trading with actual money, in order to confirm trading techniques and mental aspects.
Explanation そのトレードスタイルがベストですか？FXで勝つ可能性を高める方法とは？
Explanation デモトレードならではのFXの練習方法とは？練習できる人は勝てる人
What is a Virtual trade?
Virtual trading is trading using a demo account at a forex company and is generally referred to as demo trading or virtual trading.
Virtual trading is done by setting up virtual funds in a demo account without using real money.
Trading using practice and verification tools such as MT4 or Forex tester is called practice trading, simulated trading, or trading simulation.
Because virtual trading does not affect your funds whether you win or lose, there is a tendency among the general public to believe that there is no sense of tension or that there is no point in doing it.
However, the fact that your money is not affected means that you can trade as if you were in the real world without taking unnecessary risks or putting yourself under pressure.
Conversely, if you can’t make a profit in a virtual trade without risk or pressure, how can you make a profit in a real trade where your money is really at risk?
We strongly recommend that you take advantage of the psychological handicap-free environment of virtual trading to verify and practice your trading methods.
Explanation FX Practice & Verification Software Recommendations (Standard & Free)
Explanation デモトレードならではのFXの練習方法とは？練習できる人は勝てる人
Forex Trading Practice – Summary
Forex trade practice is the practice of simulated trading (simulation trading) using forex practice software prior to trading forex with actual trade funds.
Maintaining your composure and mental stability, as well as deepening your understanding of trading techniques and increasing your confidence level, are important for you to continue earning money in forex trading.
For this purpose, it is important to carefully repeat trading practice using forex practice software.
In addition, by repeatedly experiencing the superiority of your trading methods through the profit-and-loss results of trade practice, you will develop a sense of trust in your trading rules.
This is the explanation of what is “Trade Practice,” the basic and fundamental habit for earning money in Forex.
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