Purpose of demo trading

Demo trading gives real-time experience. You can place trades and see how the market responds without losing money. When you feel comfortable enough, switch to real trading with a real account.

To practice your TA chart analysis and entering exiting trades . Its invaluable in my opinion not sure why people dont spend longer on it its risk free no capital is lost

Demo accounts are meant for everyone, whether a newbie or an expert. While demo accounts can be used by any trader, it is best for newbies since they have little knowledge of forex, as well as, to learn how to minimize losses and maximize profits. Demo accounts are almost like real accounts. Their only difference is that they are not real.

The biggest advantage of demo trading is that you don't need to add additional funds to your account to trade, so you don't have to worry about funding the demo account. It will help you to find out whether you will be able to make money with it before you take any unnecessary risks and spend money for real.

Michihito posted:
Demo is just to know how the system works and test your strategy. It is good if you know the winning ratio of your strategy by trading on demo. But usually most people use demo to see how much many they can make. They do not focus on creating a strategy. When you trade with real money, there works a fear of losing money. You become too much conscious about your decision. In demo you don't affected by any emotions like fear, greed and overwhelming joy.

Demo trading is something, which must be taken very seriously by every single Forex trader. A trader must devoted himself in demo trading at least for a year. He also is to make sure that he trades on demo as if he is trading on a live account. Once he is confident, he may switch to live trading. A demo account is still need to be maintained by a full time trader to check his strategies.

Demo trading purpose is to aid new traders in developing their trading skills by learning to trade with virtual money. When forex traders first start, they often embark on a journey of trial and error before they can become consistently profitable traders.

The main purpose of demo trading for traders is to build different skills and strategies and also for beginners to learn about live trading without risking real capital.