Remember how much fun it was to pretend while growing up? The pretend games were great because you could be or do just about anything with only your imagination as the limiter. In Forex trading you can actually pretend you are a full-blown, professional trader with something called a demo account. The way these are designed is to allow you to actually use real time data and trading tools to make pretend trades. The idea here is that you would be using the demo account as training tools. It would be a lot like Fantasy Football only without any real money involved. So, in other words, Fake Fantasy Football. Um, isn’t Fantasy Football already sort of Fake Football? Anyway, here are a few things to keep in mind about a demo trading account.
How cool is that? In Forex trading many brokers provide free accounts that you can use to build your skills. Once you get to the point where you actually want to make real trades, the broker will make the arrangements for you. The best part about the free demo account is that you learn at your own pace and it won’t cost you a dime if you make some horribly bad trades along the way.
When You Think You Are Ready, You Can Wait Even Longer
Sure, making a few good fake trades can push up your odds in Fantasy Football. Only with Forex trading there is a simple rule of the demo account system. That moment when you truly feel that you can switch to a live trading account is still not long enough. Seriously, although you may think you are ready, chances are that you still need to work on your skills. Besides, the longer it takes to develop that experience on a demo account will serve you better than screwing up with a live account simply because you jumped in too early. Did we make our point here?
Focus, Focus, Focus
When you are working the details with your fake demo account one thing to try to do to make it a bit easier is to pick one target and work all the angles on it. For example, with Forex you can choose one currency. Say you are partial to the Canadian Dollar and figure it may be kind of fun to watch it and focus on what happens to it in currency pairs. The more you learn about the CDN part of a currency pair, the better your skills will become. Try that with another currency until you get a good handle on how it moves within the Forex market and move on. If you use just one currency to focus on during your demo stage, it will be easier to pick up the rest as your experience increases. The idea here is that you utilize the demo part of the account as it is meant to be used – as an education and training device. Master that and you will be closer to live trading.