Demo accounts are great for many reasons. They offer the opportunity to try a strategy without risking everything and they allow for traders to try out a platform without having to commit their investment capital. However, depending on who you trade a demo account with, you could be preparing yourself for unrealistic expectations. Whether you are looking into a new broker and trying out their demo account to see if you want to invest money or if you are just going back to practice a new strategy, there are a few things to keep in mind when it comes to trading a demo account.
“The quote my LP is giving me has a much different bid and ask than your quote, maybe I should short the pair and hope to make up some lost margin if the market goes on a bear trend towards your quote.” This type of conversation goes on daily, probably not in your living room. It’s happening somewhere. Knowing the jargon of the trading world, and even more so, the specific security you're trading, will help you understand exactly what's happening and how it affects what you're doing in the markets. Trader on the Street is one of the best ways to quickly pick up on different jargon terms and how to appropriately use them. They go through live trading discussions and discuss what they mean.
The Federal Open Market Committee (FOMC) is the body in charge of Monetary Policy for the Federal Reserve. Currently, Jerome Powell is the Chairman of the 12 member board which is composed of 7 board members and 5 Reserve Bank presidents out of the 12 total reserve banks. The FOMC releases many critical announcements for the U.S. economy and its growth. Today, the release will be 8 times per year interest rate announcement and rate statement along with a quarterly Economic Projection.