The financial markets may be a daunting place for new and inexperienced traders. That’s why several platforms have introduced demo accounts, which allow traders to trade the market with virtual cash rather than putting up real money. The idea is simple enough: trade with a demo account until you feel comfortable enough to create a live account.
While noble in principle, the demo account is unable to simulate the psychological aspect of trading. Mastering psychology may is one of the most important aspects of becoming a successful trader. It is so critical that an entire sub-discipline of trading psychology has emerged to help market participants control their temperament when entering and exiting trades.
Trading psychology simply refers to “the aspects of an individual’s makeup that may help determine whether he or she will be successful in buying and selling securities for a profit.” In practical terms, it refers to the emotions of fear and greed when trading in the market. Only by controlling these emotions may traders be said to truly master their psychology.
While many demo accounts go to great lengths to give traders an authentic live experience, may they don’t quite provide a lesson in trading psychology. When there are no stakes, may there is simply no incentive to master your emotions or avoid potentially harmful situations.
But not so fast! Nobody is saying you should immediately fund your live account (or even open one, for that matter). A lot of preparation work should be done before you even think about depositing your first dollar into an account. This means learning as much as possible about the financial markets and the skills needed to be successful. Fundamental analysis, technical analysis and charting are just some of the basic concepts you need to learn about before opening al live account. Becoming a trader is a serious commitment, and requires real, hands on training.
Once you feel you are ready to enter the markets, remember to start off slow and steady. Keep your lot size at a minimum and avoid using excessive leverage (in fact, you shouldn’t be using leverage at all when you start). Learn about and apply risk management tools such as stop-loss and take-profit orders which may minimize your downside and lock-in gains or if they do occur.
For traders who are still nervous about entering the markets, easyMarkets offers the industry-leading dealCancellation tool. As the name implies, dealCancellation allows traders to cancel a losing deal within 60 minutes to have any losses returned to them. For a small transaction fee, traders can practically erase a losing deal as if it never happened. In this case, the small fee that is paid when using dealCancellation is not comparable to what you might lose if your trade goes against you. This is especially true for inexperienced traders.
In the world of finance, a tool like dealCancellation is revolutionary, so don’t expect to see it replicated anywhere else. At present time, only easyMarkets offers anything like it.
The idea of dealCancellation isn’t to get you hooked on cancelling your losing trades. The real power of dealCancellation is it gives you the opportunity to trade the markets risk-free for 60 minutes. For new traders, this may means the ability to access volatile market events, such as nonfarm payrolls, GDP releases and central bank statements.
When it comes to trading, volatility may mean opportunity. Many traders simply had no way of accessing those volatile events comfortably before dealCancellation came along.
EasyMarkets not only offers dealCancellation, but guaranteed stop-loss orders and negative balance protection. Combined with one of the industry’s biggest educational programs, easyMarkets has become the broker of choice for many new and aspiring traders.
To learn more about the benefits of easyMarkets, read up on the Trader Advantages. To enter the financial markets armed with the best tools and latest knowledge, check out the easyMarkets Learn Centre.
 Investopedia. Trading Psychology Definition.