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Yes, that’s right, you can trade the Forex markets for free using the same state-of-the-art software packages that professional Forex traders around the world are currently using to make live, real-time currency trades.
And you can also experience the same dynamic market action and go through the same process of making decisions based on breaking news, reacting to chart patterns, and tracking their performance in the same way that professional Forex traders do.
And all this can be done even if you don’t put any real money in your account, you won’t see any difference in how the market behaves and how you react to the market. In short, at some point, all new Forex traders need to start demo trading.
Once you start placing demo trades, you will learn a lot about how Forex trades are placed. I cannot emphasize enough, that this is a very important step for you to be able to learn how to become a trader. A demo account allows you to familiarize yourself with trading procedures, such as placing Market, Limit, Stop, and OCO orders without any risk. All dollar losses or gains on a demo account are imaginary but, as mentioned above, the trading experience you gain is not.
You should note that making big gains on a demo account does not guarantee profits in live trading; however, those who are unsuccessful in paper trading are rarely successful when money is on the line. So yes, just playing around and familiarizing yourself with a demo account can be a great learning experience; however, you will not learn how to become a trader this way. You need to have a trading strategy.
Once you sign up for a mini-demo account, you will need to try one of the demo packages from the broker you choose. Whichever demo software you choose will do because they all have the necessary indicator tools you need. Once you have downloaded the software, you can then set up your demo account and start drawing trend lines, marking support and resistance levels, monitoring moving averages, etc. This is also a very good way to get used to the way orders are placed. Once you have a real trading system, you will already know how to place orders correctly.
And remember, everyone makes mistakes when placing orders. So it is necessary to experiment first on a demo account so you can make your mistakes without losing real money.
