02/01/2012

Forex: What is a demo account good for?

Every serious and less serious online broker offers you a demo account where you can safely try trading. It is a nice thing to learn the basics about trading but there are far better possibilities to do that. 
While trading in the demo modus you'll never be able to discover what it feels like when you risk your own money. The stress, the pain, the irrational reactions!
Something that is related to trading with real money is trying to be a signal seller. There are different broker like eToro or different trading signal provider who look for successful traders which in return can earn money by selling their signals to investors. These investors become followers of the top traders and copy their trades paying the top traders a small precentage of their profit or a part of the spread. 


How this exactly work you can read on the particular homepages. Here are some good websites for signal providing

Now you might ask me, how can I as a beginner find people who will copy my trades?! To be honest, in the beginning you will probably not be very  successful with that. But that is not the point. What really matters is that you will learn trading under very competitive circumstances (another people will try to perform well and sell their signals) but without risking your money. If you do well for instance, possible investors will pay attention to you, this will increase the pressure on you and you will find yourself exactly in the situation, in which you will be in, when you sweat and fight for your own money. And if it goes bad and you have a bad performance as a signal provider, you can always start again, without having lost any cent. Because trying to be a signal seller is for free. 

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