As a result of the increasing interest in financial markets (stocks, forex, futures, cryptocurrencies,...) in recent years, most people invest and trade over the internet. In this process, while people who have certain financial education, financial literacy or take professional investment consultancy can make the right investment decisions and trade in the right way, they can profit from the financial markets; most people who do not have any financial education and do not have financial literacy also lose a lot of money because they make wrong investment decisions and trade in the wrong way.
Investing long-term in financial markets, making short or medium-term trades, that is, being a trader, is a professional profession. This is exactly the job of fund managers working in the investment departments of banks, brokerage houses or fund companies today. The money of people who own capital and want to use their savings in financial markets is collected in funds of certain names and a portfolio is made by the fund manager to make financial investments. Here are the financial instruments in this portfolio, when to trade, to follow the market, when to realize profit, to continue with the same instrument after profit realization or to enter different instruments more suitable for investment... etc. all decisions regarding the management of the financial portfolio and providing returns are made by professional fund managers.
While this whole process is so comprehensive, it is necessary to learn fundamental analysis, technical analysis, price action analysis and be financially literate in order to be able to successfully do financial investing, which requires being a professional. One of the most important parameters is to know the trade psychology well. Most of the people who trade in the financial markets and lose money, trade at the wrong time, on instruments that are not suitable for investment, because they do not have sufficient financial education, and because they do not know the trade psychology, they cannot manage their instant psychology well, act in the psychology of a losing gambler and lose even more money. It is inevitable for beginners and non-professionals to trade on a real account and lose money. For this, it is ideal to first start with a non-real money on a demo account. Also, opening a demo account is a practice that professionals also do. Like the training matches played by the football players before the real matches, it is seen that professional traders frequently make transactions on the demo account and develop strategies as training.
People who want to make financial investment decisions by themselves and trade transactions must be financially literate. In this process on the way to financial literacy, "if I hear, I forget; if I see, I remember; if I apply, I learn!" Always knowing the promise, just like the training that athletes do before playing a real match, buy-sell transactions, investments should be made with unreal money in a demo account.
You can compare the financial literacy and trader process to the stages of learning to drive in daily life. Just as it is necessary to enroll in a driving school first and receive the necessary theoretical and practical driving training, in the same way, to trade in financial markets, you must take basic analysis, technical analysis and price action training, understand and fully learn what is learned in these trainings, in a demo trading account. It is necessary to trade for a long time with non-real money.
So, how long should you trade on the demo account? For the answer, if we look at the past process of professional traders, it is a minimum of 6-8 months by opening 4-5 trades every day and watching the live market charts for at least 6-7 hours a day. At the end of this process, if you can increase your unreal money in the demo trading account as a result of the trades you opened from the right places, by constantly observing your risk-return ratio, in short, if you are on the winning side, then it will be right to trade in the real account with your own decision.
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