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Forex trading – Demo or Real?
Written by: PaxForex analytics dept - Friday, 27 June 2014 0 comments
Forex trading is not something where you can just dive into without any experience and preparation. Even when you think that you are ready and prepared it seems it will become real once you send an actual trade to the forex market. Any broker that you will choose to trade with will offer you a demo account or real account. It is up to you to decide where you going to dive in, demo or real forex trading.
Your forex broker will give you an opportunity to open a demo account with the exception that the money in the account is not real. Trading forex in a demo account will allow you to place trades like in a real account which will completely simulate the technical aspects of forex trading. Once you have mastered the mechanics you can use the demo platform to experiment with various trade sizes and styles in order to determine your trading personality.
Demo trading can help you discover what type of trading suits you the best, but you should know that no matter how well disciplined you’ll become and no matter how much in profits you’ll make there is no attachment to the money in the account because you didn't
have to earn it. When you have no attachment to the money it is easy to take risky moves that you wouldn't take otherwise.
This can cause you to feel like you know what you're doing, but fail once you begin live trading. On the other side once you decide to start forex trading in a real account this will prevent you from getting fake experience in demo trading and fail once you move to real trading. Do some research and you will find out about many beginners who had such great success in demo trading for several months and failed in live trading.
The most successful traders will agree that opening a micro account with the right broker and getting real experience with trading real money is the best way to start forex trading. There you can start placing and executing very small trades and develop your own trading strategy. In the end it is on you to decide and make the choice: forex demo trading and failing after or forex real trading and earning real money.