Paper Trading

Forex sites usually offer free demo accounts to their registered clients. These accounts have all the realities of trading associated with them yet carry none of the risk. Because you are trading with play money, you do not have to worry about losing your hard earned real money. This is called paper trading, and it is a valuable way to learn how to conduct your own real trades.

The temptation with fake money trades is to be as aggressive as possible. This might make you a few quick bucks, but it is not the proper way to carry yourself. Aggression is certainly warranted in some instances, but there is nothing to be gained by this.

When you are paper trading, you will want to mimic your regular trading style as much as possible. If you are overly aggressive in your paper trading, the worst thing that can happen to you is success. This is because being aggressive will only lead to losing real dollars down the road. A bit of moderation is necessary, even when you are not trading real money.

Start trading with eToro
77% of retail CFD accounts lose money.

The more you practice with fake money, the better trader with real money you will be. You will get a feel for your style as a trader, plus, you will see what your strengths and weaknesses are. This will allow you to refine your style even further.

Paper trading might seem pointless at first, but it is actually a very good way to learn how to trade and how to use your platform’s software to the best of your ability. This way, you will be fully capable of making consistent profits in the real world of trading.