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Forex demo account

Because Forex is not an aided trading where traders can get forecast and opinions from all kinds sources as comparison, anyone who want to jump in the Forex bandwagon must first learn to use the trading softwares and reading trends on their own. Unfortunately, many people either dive in blindly or trade paper trading in Forex demo account for real transactions before its time.

According to Jay Norris, head of Brewerfx.com and Forex expert, in forexfactory.com, "Two things I hear a lot in this business:

#1) I wish I would have started out demo trading.

#2) I wish I would have stayed in my demo account longer."

Obviously, someone in the first scenario can avoid paying the hefty 'tuition fee' if one choose to learn the ropes in a Forex demo account. On the other hand, the second situation prove that even when one is well-versed in Forex, it always pays to test out trading theories and strategies for errors using a Forex demo account before graduating to trading live.

Now that a Forex guru has forewarned you on these two common Forex mistakes, which ultimately only point to one thing really, you really ought to do the right thing and sign up for a Forex demo account. Virtually every established broker extends a free Forex software to prospective clients for a typical 30 days trial period before they are given the option to upgrade to a live trading account. Along with the free software is the demo credit that enable you to trade following live analysis as in any real trading and learn without risking your money.

A Forex demo account is the only way one get real, 'in the trench' battle experience without getting burned. You start by getting familiarized with the features and interface on the forex platform, and this can vary from one software utility to another. Next, you'll be asking for quotes and selling based on market fluctuation and trends with information that is updated as it happens. In quoting from inecobank.am, "It's a good idea to place at least 20 demo trades on each platform before trading actual money, just so you can master the specifics of order entry on each platform."

However, another authority on Forex trading, John Callingham observed on www.tradelikethepros.com that "...many have criticized the lack of realism with the use of paper credits...", implying demo traders to be treating their paper trades like a game or even gambling, instead of placing them after careful study of data such as in an actual trade. This inevitably happen in a Forex demo account as they can never feel the loss, even when big amounts are involved since it's not real, and it's not theirs. To overcome this, one must treat a demo account like a live account and bid amounts like they would likely bid in reality.

The fact that forex is a lucrative channel of investment that's active 24 hours a day for 365 days in a year has attracted many investors, yet more often than not, losses can happen to those who rush in. While there are no guarantee, perfecting your skills and generating constant profit from a Forex demo account before entering the live arena is crucial to one's Forex success. Although one may not warrant another, the latter is never possible without the former.