You can open a demo account for FREE with most forex brokers. These “pretend” accounts have most of the capabilities of a “real” account.
But why is it free?
It’s because the broker wants you to learn the ins and outs of their trading platform, and have a good time trading without risk, so you’ll fall in love with them and deposit real money.The demo account allows you to learn about the mechanics of forex trading and test your trading skills and processes with ZERO risk.
Yes, that’s right, ZERO!
YOU SHOULD DEMO TRADE UNTIL YOU DEVELOP A SOLID, PROFITABLE SYSTEM BEFORE YOU EVEN THINK ABOUT PUTTING REAL MONEY ON THE LINE.
WE REPEAT…
YOU SHOULD DEMO TRADE UNTIL YOU DEVELOP A SOLID, PROFITABLE SYSTEM BEFORE YOU EVEN THINK ABOUT PUTTING REAL MONEY ON THE LINE.
“Don’t Lose Your Money” Declaration
Now, place your hand on your heart and say…
“I will demo trade until I develop a solid, profitable system before I trade with real money.”
Now touch your head with your index finger and say…
“I am a smart and patient forex trader!”
Do NOT open a live trading account until you are CONSISTENTLY trading PROFITABLY on a demo account.
If you can’t wait until you’re profitable on a demo account, then there’s very little chance you’ll be profitable live when real money and emotions are factored in.
You’re probably thinking, “Sooooo…what I hear you saying is…there’s still a chance then?”
If you’re that impatient, then at least try to demo trade for at least a MONTH.
You can hold off losing all your money for a month riiight?
If you can’t, just donate that money to your favorite charity or give it to your mama…show her you still care.
Even after reading this, you’re probably still NOT going to demo trade for at least a month since you’re stubborn like that.
But at least we tried. 😑
Concentrate on ONE major currency pair.
It gets far too complicated to keep tabs on more than one currency pair when you first start demo trading.
Stick with ONE of the majors because they are the most liquid which usually means tighter spreads and less chance of slippage.
Plus, in the beginning, you need time to focus on improving your trading processes and creating good habits.
You’ll also need to experience different market environments and learn how to adjust your methods and strategies as market behavior changes.
You can be a winner at currency trading, but as with all other aspects of life, it will take hard work, dedication, a little luck, and a whole lot of patience and good judgment.