Wednesday, August 27, 2008

Forex beginners - Learn with a free online practice account

The best way for forex beginners to learn about currency
trading is about is to open a practice account.

Most forex brokers offer a free practice account to those learning about forex.
This works online in a virtual capacity so you can trade with immunity not losing real money but virtual practice money. You gain experience in how margin trading works and the forex broker wins a prospective future client by providing the service.
Practice accounts give you the chance to get practical experience in the
forex market.

When the forex market reacts to new information due to world situations
you are able to see how it affects your trading.
You will be able to see how prices change at different
times of the day and how various currencies react to each other.
Because you are not losing or gaining real money fear does not affect you learning process. Having said this it is much preferred that you trade as though you really were trading with real money as emotion is a major factor of trading.

It becomes a simple process of trying all sorts of combinations and strategies to see how you cope and what works for you. It is a very helpful process to learn how your margin trading or leveraged trading works. Begin simply and then add the processes of learning how to analyze charts and read the indicators.

Experiment and have some fun but make it a serious learning process by imagining you are using real money. That way you will get the most out of your practical learning experience.

An excellent platform to practice and learn is at OANDA.

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