This is the matter that each beginner trader asks about. And maybe at first sight everything is clear, but in reality it is not so simple. We all know that time is money so we’ll try to develop this idea in order to give you some useful advice.
Many traders start from demo account trading – this is the right thing because here they learn how to use trading platforms and test strategies in real time. There are people that keep trading on demo and this seems to be logical as soon as the trader can make a lot of mistakes without losing money. Trading on demo allows entering into high risk without any fear. Anytime you lose the whole capital, you can open another demo account, isn’t it right?
However, trading too long on demo is not so good because traders become over trustful. They do not feel responsible for their actions. Also, step by step the attention to focus on market is being lost, because they say “Hey, there’s no real money on roll so why should I watch market everyday and follow a trading strategy?”. But what is the most dangerous thing: the immunity to test the most risky or absurd strategies can lead to sad consequences.
Of course trading on demo account is absolutely necessary in order to get familiarized with MT4 or MT5 platform, to learn how to click on buttons or move indicators. In this context, the demo account protects the trader from “technical” errors but it shouldn’t take too long because when you’ll open a real account, you’ll be stricken.
A good idea would be to start trading on demo a real account with the same time. Try to analyze the demo and copy the best trades on your real account. Thus you’ll learn more quickly many things. Also, try to get to the end of the month with more positive pips than negative ones. Forget about big profits and try to get self educated by minimizing your losses and learning from your own mistakes.
As a conclusion, note that Forex is not a bet game. This is a dynamic place where the trading is based on signals, not on intuitions. So, before opening any type of account, think about your goals: to become a trader or an unlucky player.