By Forextraders.com
Forex trading is best understood through trading. You can devour voluminous books, discuss with forum gurus for hours, paper-trade for ages, and become a billionaire demo trading, but ultimately the only way of succeeding in forex is trying a real forex strategy in a real market with real money the loss of which will not derail your future plans, and which is protected by low leverage and sensible risk controls.
While a period of patient practice with a demo account is obviously beneficial and helpful for traders who want to understand what the different concepts in trading and forex mean, the utility of this tool diminishes quickly as soon as the trader has a good degree of familiarity with the purpose of technical tools, order types, and the unique features of the trading platform used. As soon as this kind of basic knowledge is acquired, the trader will discover that he is not satisfied with the calm, protective, and risk-free environment of demo trading where there’s no possibility of experiencing the prominent emotional issues of trading. From then on, the real study of trading will begin where real money and real risk are inseparable parts of the game. It is in fact a good idea not to delay this process for too long, because good results gained in demo trading have little value and inspire false confidence which can be very harmful in actual trading.
Although many traders feel like demo or paper trading is a better way of learning forex, this belief is dis-proven by the facts. Demo accounts are offered by all kinds of brokers, and almost all new traders spend some time demo trading, but 80-90 percent of retail traders still lose money. It is clear that if demo trading offered any significant benefits to beginners, it should be reflected in the statistics, yet they are not. The low value of demo trading is born of the simple fact that some of the most important skills in a trading career, such as risk controls and emotional discipline, have little value while trading a demo account. After all, there is no risk in a practice account. And risk can only be controlled where it exists.
In short, there’s no substitute for the real market, and there’s no way of effectively simulating something risky like forex in a risk free environment. If you want to get a good forex education, the only way is to get it in the thick and heat of the real markets.
Author Box:
Forextraders.com is the place to learn forex market trading. Extensive studies of the market with in debt analysis of all aspects of the currency market ensure that you will never regret the time spent at this superb source of information on all things forex. Forex is risky, and to control the risk you need knowledge and trading. To avoid building the base of your career on weak foundations, choose the best teachers in the world: go to forextraders.com now and join this exclusive club of professionals.
