Demo trading is a perfect way to start trading for beginners. This is done through demo accounts. Demo trading contains dummy funds, to enable the trader learn about how to trade and the usage of the trading platforms before setting up a real account for himself. It is, therefore, risk-free trading basically.
Trying demo trading in the initial stages of your trading routine, helps you master the specific details of trading. You eventually learn how to deal with the various fluctuations in the market and test your strategizing potential.
Using demo trading, it is easier to try your hand at how you can set different stop loss and take profit, how much you should invest in a particular scheme, etc.
All in all, demo trading can be of great help for the newbies.