Translated from Russian by Google Translate
31 Август 2009

Do I need a forex trader demo account?

Currency dealing - this is an occupation that requires time and patience for its development. Forex trading can be compared to boxing, where success has sought only the boxer who has attained the best physical preparedness before the fight. And if a boxer prepare for battle, then very likely he will be beaten. The same can be said about the currency market Forex. If you get ready to trade, then your chances to profit significantly increased. And if you start trading, little understanding the mechanism of its implementation, then the chances are that you will be beaten in the financial plan.


The similarity in the above examples is that in both cases requires some training, which consists of skills and abilities, as well as some psychological training. The only difference is that the first case, the physical work, and the second - the financial.

Another significant difference is that when we get the physical beating, then over time we have recovered from injuries and it usually does not affect the rest of your opportunities. When we get a financial beating, then it is directly or indirectly affects the other spheres of our lives. So problems may arise in the family and much more. That is why, before you start to trade on the currency market, we must be fully confident, we must understand what we are doing and what we expect.

professional boxer

All boxers initially not seriously tested. At first, they train hard without injury to their health. That is, it is assumed that for the proper formation of such an athlete requires optimal conditions, excluding traumatic. The work is exclusively on technique and general physical preparation.

Each boxer periodically runs a series of sparring with the more experienced athletes, but it excludes the significant physical injury. And only after the boxer will be properly trained, but then he goes into the ring and begins to participate in official competitions.

Of course, in this case, the boxer will not be insured against the risk of injury, but given the fact that he passed the initial training is concluded that this athlete is subject to the risks of deep KOs much less than those who entered the ring without preparation.

It is worth saying a few words about the psychological side of training. Is there any fear of an athlete to get knocked out? The fear, of course, there is, but given the initial training, so the athlete will be ready for this, he will be able to control their feelings. Will there be prepared to act without thinking boxer? More likely, no, because the kind of training he has received will force him to reflect on the feasibility of its own battle, by which he will make the appropriate conclusions.

professional trader

If you compare the professional trader and a professional boxer, one can see that between them there is a lot in common. But unlike the boxer, beginning trader should not spend years using forex trading demo account. As a rule, in order to grasp the essence of the processes occurring in the market, is to give at least a few months to study the general trend of trade.

Using a forex demo account, the trader will protect themselves from the risk of loss. In addition, there also exists a psychological side. The fact is that when a new trader arrives at the foreign exchange market and, bypassing the forex demo account, begins trading on a real account, then eventually a trader receives a loss and lack of available funds, as well as negative mood, he throws the trade.

Another thing, if the trader was phased training, including long honed his skills using the forex demo account. Such a trader will be more prepared as a practical as well as psychologically. Therefore, even if he gets a loss on the foreign exchange market, trading on a real trading account, it is unlikely to bring down such a trader confused. He will conduct a thorough analysis of its activities and will try to avoid committing similar mistakes in the future.
By the way, you should pay attention to the important feature that characterizes the forex demo account. The fact is that if you’re too long to trade on a virtual account, you will lose touch with reality. You’re too bent on trade, and because forex demo account is deprived of one of the most important features, which is inherent in the forex market. This feature is in the psychological attitude to trade. When you execute a trade using a forex demo account, then you are devoid of any emotion, because you are not risking real money. This factor may do a disservice to the future, as when trading on a real trading account you will be exposed to psychological pressure, to learn to deal with that - it’s not a single day.
So, summing up this article, I would say that forex demo account - it is really a working tool for the formation of a young trader, as an experienced professional. In my experience, there was even one instance when one novice traders started trading with a very impressive amount, but when the balance is something around $ 300-500, then he stopped and began training on a virtual trading account. He developed his own trading strategy and tested it on a demo account. A year later, this guy played for the lost amount.

This suggests that the use of Forex demo account is not too late never. The main thing - is the ability to properly combine the actual trade with the testing of new strategies on a virtual trading account. It is the ability to stop in time and limit their losses is one of the main engines of successful trading. Therefore, the benefits, which provides forex demo account, are undeniable. The main thing - do not lose faith in the success and the piece on the maximum force to achieve it.