The Importance of Trading Virtual Forex Before Going Live

Now this is a widely disputed point in the forex world. Many forums that relate to forex trading have many posts asking about demo forex accounts. These demo accounts are completely virtual meaning that you can't lose any of your money. The bad part is that you can't win either. These accounts are to get newer traders used to doing trades on that specific trading platform. Now many people out there are constantly asking about the importance of trading virtually.

The first reason is to get new traders used to trading Forex. The Forex market is very different from all the other forms of trading like stocks. Things happen instantly and 24 hours a day. Someone that has never seen a forex trading platform would probably look at it like Egyptian Hieroglyphics. But relax, you'll be fine. This is why we start on a virtual market. Start playing around with the settings and the layouts until you happen to come across one that intrigues you. Then just start trading as if that were your money. Many Professional forex traders believe that trading virtually is a complete waste of time. Their main point is that people don't trade the same as they would in real life. This is where you that read this article will be different. You have an advantage over most beginners. Trade as if that were real currency. Act like you've just deposited that 5,10,15 thousand dollars that you see in your balance. If you lose a trade, learn from your mistakes. Remember this is just for a bit of practice. Don't trade stupid - Ex. Don't take out a big 500 Long position if the market has peaked. 500 is the amount of currency. This will leave you high and dry with no experience.

The second reason is that practice makes perfect (although perfection is impossible in forex trading).  But obviously, the more you practice at something the better you are. It is common sense. So why do the big dogs like to tell you to not waste your time? Well I can't really say for sure, but I can however tell you a couple reasons that they say this. My first instincts tells me that they want to eliminate extra competition. They know that almost every trader loses their initial investment sooner or later. This disheartens many people. So much in fact that they never touch or even look at forex again. Instead, they peg it as a gamble and a scam. The only other thing I can think is that they just want to read about you losing money. I hope nobody told you that this was a nice game. Yes, some people out there will act like they're helping you, but they really don't care about anything but making you fail. However, there still are sincere traders who do assist new traders, such as over at the Forex Lasers forum. So, the next time you see someone tell another not to demo, simply say the following. If you run around a track for practice every single day, will you have a better time then when you started? Of course you will. This is why every Olympic athlete trains all year around every year before the game. They all know the secret you now know. So in the end, everyone can use a little practice every now and then, so get on yours and start trading those currencies.

I still can't comprehend why I see so many people talking down forex demo accounts. They are meant to get you comfortable with trading on a live account. Most of the time the people will say that you don't need to take this step. But every way I think about it, starting with a virtual account makes more sense then just winging it. In 90% of newer traders lose their initial deposit at one time. Now this is most likely due to the fact that they jump head first into trading forex. They just barely understand the trading concept. So why would you want to lose $100's and $100's of dollars learning how to trade correctly when you can use virtual money? Virtual as in you won't lose a thing no matter what! Now you see my dilemma, I just don't understand why people still insist to push others away from demo accounts.

So now it's up to you. Now you know why I tell everyone to start off trading virtually. But the next question that arises is this: how long do you stay on a demo account? Well this is by far one of the hardest questions in forex. I like to suggest that you start when you feel confident in trading. Even after you've just taken a loss. See most people feel a fake confidence when they are up in their balance. Everyone feels this way, it’s a natural human feeling. But this can be a very wary confidence. Because the second you lose a couple hundred your skin is going to turn into a ghost white. This is because you chose to start too early. Everyone loses from time to time. When you feel confident in yourself, even if you just lost a couple virtual trades, then go out to the live world of forex trading.

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