Naturally, it is alluring to use a demo account in a very different way than we’d if we were handling real money. People frequently leap into demo FOREX trading like it were a game. The way to be taught how to do it well is to study and to create a demo situation that’s as near as possible to the situation you would be in if you were trading for real at this time.
So it is very important not to exhaust the leverage, open trades at random and play with 10 different currency pairs in demo.
The strain factor
However careful you are to make your demo currency trading appear as real as practical there is still a major difference which you can’t artificially recreate, and that is the impact of stress. Stress is a physical reaction to a position where we believe ourselves to be in peril. It kicks in for mental, emotional and financial perils as well as physical perils. This could often lead to bad choices made in the heat of the instant. Then boost your position or your risk continuously. If you act in this way, demo currency trading can be a very useful preparation for the real thing.
