Trading on a demo account will teach you how to use your trading platform and give you the opportunity to familiarize yourself with all your broker’s trading tools. However, I do not believe that one can practice their trading strategies without a real trading account. The psychological aspect of trading with real money is the most important, and difficult, element of successful trading. My opinion is to “practice” trade on a real account using minimal position sizes. This way the trader is able to monitor their wins and losses, without risking an amount of money that will affect your financial status. Losing $50 is real – to everyone; Losing $5000 on a demo account is not real and therefore has no relevance in teaching a trader money management and the rules of risk/reward.
FXtrademark: What’s the good of a demo account?
