The first thing you should do if you are a beginner in forex trading is to open a forex demo account. This will give you the opportunity to learn and practice forex trading without the risk of losing money in the process. Additionally you can use a demo account to test different trading systems.
Choosing a profitable forex trading system is vital if you want to succeed in forex, so you probably have to test a variety of systems until you pick one that fits your trading style and generates profits for you. It is not too difficult to find trading systems. There are numerous available on the web, some of them are free and for some others you have to pay (most of them have a refund policy of 30 or 60 days which give you the opportunity to test them and if you don’t like the results, take your money back).
You should check your system in two different ways before you start trading with real money. The first one is backtesting. Backtesting is the process of testing a system using historical data of at least a 6-12 months period. This will give you an idea of the profits or loses you would made if you had been following the system during this period. Of course, you should know that results of the past are not a guarantee of future profits and additionally historical data do not always show the truth and are a little different from real price movements
The second and most accurate way is testing a system on real time data using a demo account. In that way, you could check and use a system under the same conditions as if you would trade with real money. The only disadvage of this testing method is that it takes some time to get a clear picture of the system’s performance. (usually a few months) You could decrease the time needed to check a system if you choose day trading or scalping systems. In both these types of systems, trades often last only a few minutes, which means that many trades will be generated each day, as a result you will have a clear picture of the system’s performance in a short time. On the other hand day trading and scalping is too risky for a beginner and even thought you could make really fast profits it is not advisable
Whatever system you decide to use, you should first test it on both real and historical data before you implement it in your forex trading strategy and be sure that it is generating consistent profits in the long-run. Fortunately, most forex brokers offer a free demo account, something that makes the whole process of testing easy and helps you improve your forex trading with zero risk.
Therefore, what are you waiting, open a free demo account today!
Well I totally admired this idea!!! We sometimes wonder giving a chance to play around on the real account which leads to bad consequences. I was always advised my senior who working with me when I was a technical analyst for one of a reputed broking company. He says ‘never role dice when and unless its yours’. He insist me not to play with even our own real account, I have been practicing the same since ever he said. Working on demo gives you hell of confident on making the real trade. In forex, as written on this article backtesting process even need more time. I would suggest it ifs more than an year practice. Thanks for this site. I would also recommend you to practice on stock market brokering, its real things as we flow high on forex, stock market is being on the top notch business, frpm white collars to normal man can do this.
Thanks for your time & efforts.
Dustin
I really want to try this Forex Trading business. Very lucrative and really gives high opportunity if done right. I am still on the phase of studying it and making my self familiar with the core system of Forex.
Yes you definatley need to open up a practice trading account beforehand. Hopefully a paper trading account that is already with the same broker that you will be using with real money so that you can get a feel for their software as well.
Paper trading accounts have saved me a lot of money in the past. And they have taught me a lot of lessons that have improved my trading systems.
Is Forex Trading Business risk?
Of course forex trading is a risky business and this is the reason why you should practise with a demo account and test your trading system first and then start trading with real money.
Yes, I have now my account in the Forex industry! But I wonder if Forex Trading still very successful in in the market? But I believe in your ideas. Hope I could read more post like this so that I will be guided on what to to regarding Forex industry. Thank you for your very good Idea. I expect more of it..
Forex is a risky industry, but if you are good at it, it’s worth it. I am in it for almost 3 years now. Beginning was really hard, but now I am really addicted to it. I recommend it to everyone.
Forex gives more liquidity than any other trading options.
You are wright practice is very important, I had an account in the past at a Forex trading company and lost all my money.
Fantastic tip. I don’t know how I came across your site but it was worth to read that. Thanks!
Very interesting post.Lucrative .I really want to try this forex trading.
One most important benefit of having a Forex Demo Account is that it shows conditions of the real market. You should always keep a check on your finances and make wise decisions while doing Forex trading.
Did anyone tried forex mini accounts? I’d prefer trying forex mini over forex demo since you get profit and loss in real time. You can actually learn it SERIOUSLY!!
when you become a customer of the Forex industry, you are very discriminating and selective about what products and services you choose to purchase. Take your trading education seriously. Take your time and develop a long term plan for success and you will be able to enjoy the exciting benefits that the Forex market has to offer.
Oh my goodness! a tremendous article dude. Thank you Nonetheless I am experiencing challenge with ur rss . Don’t know why Unable to subscribe to it. Is there anybody getting an identical rss problem? Anyone who is aware of kindly respond. Thnkx
Great post!
Forex demo accounts in my opinion are very important, especially for forex beginners that has no experience in foreign trade market. It is very important to learn Forex, and of course to practice with Forex demo accounts . This way you can study the field and to practice trading without losing money – and then when you real trade at forex market you can enjoy from earnings. good luck!
Don’t get me wrong demo accounts are great but I think the best way to learn trading is through mini and micro accounts. You get real time experience with the live markets, no better way to learn in my book.
It’s really nice blog – I will obviously tell about it to my friend! Forex market is a good solution.