Placing a Trade

Before you actually place a trade in demo mode, the following process must be carefully completed:

  1. The risk you are taking has been determined
    You know exactly how much demo capital you are willing to risk and have adjusted your position size accordingly.
  2. A fundamental analysis has been made in advance
    You have looked at the underlying value, economisch factors, figures, or market conditions.
  3. A technical analysis has been made
    You have studied the price chart to identify support and resistance levels, trends, and patterns, often supported by indicators.
  4. A clear entry signal is visible
    Only when all your criteria turn green and the exact moment for entry presents itself, do you take action.
Only once you have done all of this carefully, do you place the trade in demo mode. We will explain each of these components step by step in this chapter.