Naturally, it is tempting to utilize a demo account in a different way than we might if we were dealing with real money. People frequently hop right into demo currency trading as though it were a game. Foreign exchange trading isn’t a game. The way to learn how to do it well is to study and to form a demo situation that is as near as feasible to the situation you would be in if you were trading for real now.

So it is very important not to max out the leverage, open trades at random and play with 10 different currency pairs in demo. Anyone that does that is wasting the opportunity and is likely to crash and burn when they begin trading in reality. The stress factor

However careful you are to make your demo currency trading appear as real as possible, there’s still a major difference which you can’t artificially recreate, and that’s the impact of stress. It kicks in for mental, emotional and monetary perils as well as physical perils. It prompts us to take fast and extraordinary action to avoid the perceived danger. It is hard to avoid stress in real trading and it’s not a smart idea to try and create it artificially in demo, so all you are able to do to stop this becoming a problem is to start little when you do go live. Then boost your position or your risk gradually. If you act in this way, demo fx trading can be a very useful preparation for the real thing.