Time to open a forex demo account

Now that you have a basic understanding about the forex market and how it works, it's time to open a forex demo account. Demo account means that you will not trade using real money, instead the forex broker will fund your account with virtual money - if you lose this money doing bad trades, there's no problem, you can contact the broker and ask for more virtual money.

There are many forex brokers out there and most of them offer demo accounts. I use and recommend forex.com - they are very good to start with. After you will learn more about the forex market, you should try some of the other forex brokers and choose the one that works best for you. You can even use more than one broker at the same time. I will explain in a future post why you would want to do that.

After you set up your forex demo account, you can immediately start carrying trades. However, at this point, you will not understand much about what a pip is, what is the difference between going long and going short or how to follow the trend. Trading in the forex market is not so hard as it might seem in the beginning, but even so, you will still need to read about it for a couple of hours (or even a day or two).

The site at forex.com has a very good tutorial about how to use their forex trading platform (the program you will use to carry trades), so you should start by watching it. You will learn exactly what to do to buy or sell a currency, how to use the forex charts or to place a limit or stop loss order.

However, do not try to understand everything the first time you read about it. It will take a few days before things will start to make sense.