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Doing a Test Run

A good method to learn how the Forex market works is to take a practice run before you do the real thing. Fortunately, many retail platforms offer investors the chance to trade a simulated account for several months. You can use this opportunity to develop a trading strategy, become accustomed to new market conditions and movements, and learn how the platform works. (A list of major Forex firms that offer demo accounts is provided in Chapter 8, “Inside a Forex Platform,” in the sidebar titled, “Forex Trading Platforms.”) An investor should always take a practice run with any platform before trading with real funds, regardless of his or her experience.

The concept that the season is made in the preseason is true. The more real you make your “paper” trades, the better equipped you will be to handle real market conditions. Mistakes are common when the adrenaline is pumping during a heated trade. And calling your FCM to say “I made a mistake” will not be taken lightly. Rarely does the FCM change a trade.


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