How NOT To Do a Forex Demo

I opened up my first Forex demo account with the intention of making a fortune by trading in the Forex market. It is a given that before you attempt to trade, you should open a demo account, and I am grateful that I had the intelligence to at least do that before I started live trading.

I had seen ads for a large Forex broker, and because they seemed to be well-known and popular, I decided to go to that broker's website and apply for my Forex demo account. The application process took only a very few minutes, and after confirming my e-mail address, I was on my way, or so I thought.

When I finally got the trading platform downloaded and installed, and opened it up for the first time, I was confronted with a dazzling array of numbers, currency symbols and tables that were very unfamiliar. I did see that there were charts available, and since I had some experience with charts in the stock market, I decided to start there.

I opened a few charts for what I later learned were some of the major currency pairs, and even found some indicators that I was familiar with. I applied a few indicators, and played around with the charts until I had a very impressive looking screen in front of me.

I returned to the main trading screen, and proceeded to watch the prices change quite rapidly before my eyes. It all got more and more intimidating, and I never got much beyond that point. I think that I bought 1 lot of a currency pair, and watched the prices move for a few minutes, and then sold it again (for a loss). But other than that, I didn't do anything else with my Forex demo at that time.

The problem is, I had gone about the whole thing backwards. There really is no sense in opening up a Forex demo account unless you have a system that you are intending to trade, and that you want to test and practice with before you start live trading. You have to have a plan, which means a system that you intend to follow, to determine four things:

What currency pairs you will trade.
When to buy.
How much to buy.
When to sell.

Unless you know the answer to those 4 questions, a demo account is going to be nothing more than a very intimidating screen full of currency pairs and moving prices.It wasn't until about a year later that I found a system that made sense to me, and finally opened a demo account that I would really use. And when I opened up the trading platform this time, I knew exactly what I was going to do, because my system answered those 4 key questions for me.

Now, I am happy to say that Forex trading is a big part of my life. I have since started a newsletter and blog, in which I share the system I use with anyone who is interested in learning this amazing way of making money. I encourage you to learn how to trade the Forex market. But I hope you will start a little more intelligently than I did, and that means, starting with a system!