”;
Lets start off by looking at the forex demo account. Forex brokers
offer online forex trading/demo accounts to help people to get used to
their forex trading platforms, let them play around with the platform
trading tools and get them real interested in forex trading. Practice
accounts not only let you learn how to trade forex for free, which is
great for a newbie trader, but it also expand the number of traders in
the forex market and on their platform.
I can provide you with unlimited forex trading tips, forex advice and
forex trading guide etc, but the most important thing is that you must
absorb what you have learned and apply it. It’s just like I can teach
you how to fish, but if you don’t apply those techniques properly
yourself, you would not be able to fish well.
So the main pro of currency trading is by using a free practice account
which allowed people to begin forex trading with ‘virtual’ money until
you have the confidence and knowledge to risk your own hard-earned
cash. You will be able to learn the forex market, test out your forex
trading systems and trading strategies without risking a penny!
However, this is not always good news. Why? Here comes the cons…
When trading with ‘virtual’ money, you may feel that you are not using
the real hard-earned cash and are more likely to risk on forex trades
that you know you shouldn’t and wouldn’t make in the real forex trading
world.
If you opened a forex demo account, and you happen to win trades(by
luck), which should’t be opened at all, your confidence will suddenly
be boosted up. A few times of that and you will start to think that
your trading skills are up to standard, which are not, and start to
take uncalculated risks, trading with your real money.
You will then imagine if you can make this much money in demo trading
then how good would it be if you were using real money? Then you open a
real forex account and deposit your own cash. This is where hell breaks
loose. You enter a risky forex trade with your most of your capital, it
fails, suddenly your forex career is over and you are left with a
significant loss.
Practice accounts are very useful, only if you use it properly, with
discipline. Finally, I feel it is good to use a practice account for a
few weeks while you learn some forex trading basics and forex trading
techniques, then slowly start to trade with little capital to build up
your trading account.
Article Tags:
Forex Trading
Source: Free Articles from ArticlesFactory.com
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