For anyone new to Forex trading, the learning curve can be pretty steep. There’s just so much to learn and getting to grips with unfamiliar terms, trying to master new software and at the same time trying to make a profit while still learning the ropes can be a pretty tall order.
Possibly the single most helpful thing you can do to stop yourself getting overwhelmed is to sign up for a forex demo account before trying to tackle live trading. Demo accounts provide an excellent opportunity to learn the ropes of forex trading without risking actual real money. This immediately takes the pressure off the novice trader and allows you to focus on what you should really be doing – experimenting with different strategies and developing a comfortable and effective trading mentality.
Forex Demo Accounts are available from many different online trading platform providers, and they are free to use. Simply stated they are an invaluable tool when it comes to learning Forex trading. While there’s no substitute for trading live, a practice account is the next best thing and gives you a very real taste of the live forex trading experience but without the associated risk. All the controls, interfaces and options are the same as a live trading platform, all the indicators and real time fluctuations you’d experience normally occur just the same as well – this isn’t a sheltered environment! The only real difference between a demo account and a live account is the fact that your gains (and losses) are ultimately imaginary.
While it can’t be overstated that psychology of trading using a demo account can be dramatically different to trading with real money, the experience gained from demo trading is second to none. Trading effectively is never a single strategy – there is no silver bullet, and just because you trade very well in your demo account doesn’t guarantee you riches without risk in a live trading situation – for one thing the nerves and pressure of live trading add an element to the experience that is nearly impossible to simulate in advance – but neither does poor performance in a practice account indicate a lack of aptitude for online forex trading. The great thing is you can try out more than one as well. You can get a free practice account from almost all online forex platforms, including eToro and easy-forex, which allows you to not only get trading experience under your belt, but also choose the live platform that will suit you best.
Demo accounts are just one step in the process of learning profitable forex trading, there are a number of great articles available to help new traders as well, but when it comes to the actually experience of trading currency for profit, a Forex Demo Account is usually the single best step you can take.”