Forex free trading demo account for learning to trade for the first time

Filed in Learn Forex Trading by on December 14, 2008 3 Comments • views: 379

Forex Free Trading

Ever heard of Forex free trading? No, it doesn’t mean that you can trade currency in the Forex market without even so much as a penny and then gain a profit. What it refers to, actually, is a Forex demo account. A demo account would allow you to do some Forex free trading without using real money, however, you do not gain any profit.

Demo accounts is a vehicle for the Forex trading companies to help increase people’s interest towards Forex trading as a great form of financial investment. Many people often overlook using a demo account, but it actually is one of the more important options that a trader can try before he or she does some actual trading. Before I go any further, here is a little background info for the people who aren’t familiar with this whole industry.

One should understand that trading in the Forex market is risky business. It is comparable to gambling but going just by the rules of luck can cost someone massive losses. So if a trader wants to reduce the chances of losing his or her hard earned money then they should be very well acquainted with everything related to Forex trading.

This means that the trader should have a firm understanding of the different kinds of concepts related to Forex. Concepts such as the technical as well as the fundamental analysis involved are vital learning points. But of course, having all that knowledge without having any actually practice to apply the theories to makes them useless. Knowledge wasted, in other words. This is where the Forex free trading or Demo account enters the picture. A demo account would enable the newbie trader to be able to get a feel of the Forex market environment as well as the trading platform.

Directly going into actual trading with real money can be a daunting experience especially when faced with the variety of tools that the modern day Forex platforms has made available to traders. Even worse, when you jump into actual trading without going through a Forex free trading demo first can result into some dire losses.

So it is highly recommended that the novice first try his hand with trading with a demo account to be able to learn all the functions of online trading accounts like the placing of orders, the stop loss order as well as the profit limit functions. Having the knowledge about when to use all these functions is vital to your success as a Forex trader.

Having a Forex free trading demo account would also allow you to put all your formulated theories into practice. As we have said earlier, all your knowledge would have gone to waste without actual application. So having this demo account would enable you to practice what you’ve learned without the risk of losing any money. Refine your techniques and strategies as well as find out, first hand, which system you’re more comfortable with.

The more comfortable you are with operating a certain system, the better your results could potentially be. So remember, learn the and understand the ins and outs of the Forex market and then apply what you have learned through the use of a demo account before diving head on to actual trading.

Comments (3)

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  1. milt tomkins says:

    Hello..I am new to this site and am just starting to learn to trade… I am looking for opinions on the best trading books… I have read Robert Dorfman’s Hedge Fund Trading Secrets Revealed, which was fantastic,..I learned so much…. Jim Cramers’s Confessions of a Street Addict..(written before he got super famous) and Richard Arms’ Stop and Make Money: How To Profit in the Stock Market Using Volume and Stop Orders. All 3 are riveting and very informative and gave me info on how all this stuff works… Anyone have other recommendations?

  2. Raylee says:

    You’ve got a great site for beginers, I would like to share it with my readers as well.

  3. maybe security analysis and intelligent investor by Benjamin Graham would be great for you Mr. Tomkins

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