It is necessary to trade with virtual money to learn the basics of forex trading without risking anything. However, you should not linger on a demo for a long time since you have no more chances to learn how to trade on a demo than to learn how to drive a car on a computer simulator.
The first thing you should do is open a demo account. This procedure will take you no more than a minute. But first of all, you must decide how much to open a demo account. Of course, you can open it for 1 million, but you should not do it. The amount for the demo should be the same as what you plan to put into the real account in the future.
To open a demo account in the MetaTrader, launch the terminal, then click on the “File” button at the top, then on “Open Account.”
After that, a window will open before you, as in the figure below. In this window, you must fill in all the fields (optionally with real data). In the “Deposit” field, you can choose one of the proposed options, or enter your deposit size manually (do not forget to check the box “I agree to subscribe to your newsletter”.
After that, click “Next,” then again “Next,” and then “Finish.” After these simple steps, you will have a forex demo account on which you can trade and test your knowledge in practice.
By the way, you can
open demo accounts as many as you like, so do not be shy if you suddenly lose a
deposit, or accidentally open a trade with a very large lot size.
After you figure out
how to open a demo account, many of your will have questions about how to open
a trade, how much to trade, and many others like that.
How much to trade on a demo account?
As mentioned above,
you should not linger on a demo account. Provided that everything will work out
for you (that is, you will earn), you need to trade on a demo account for a
month or a maximum of two. If it doesn’t work, then look for why it doesn’t
work, where you make mistakes (the trader’s journal will help you with this).
As soon as you feel that you can earn money and you are sure to use the MetaTrader demo account, you can drop it and switch to the Forex cent account.
Some recommendations for trading on a Forex demo
In the end, here are few simple recommendations that will help you a lot, if you apply the acquired knowledge in practice.
Many traders behave somewhat inappropriately when they trade on a demo account. They trade without stop-loss, open large volumes of transactions, and risk too much. They think that there is nothing wrong with this since they still do not risk any real money. However, the benefit of demo account gets ruined if you do not treat it the same way as you treat a real account. If you want to learn, then use the demo account for practicing your trading strategy.