Learn Forex trading With Demo Accounts

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Any broker who wants your money in a live account will offer you a demo account; it’s the ‘norm’. But is demo trading; and are demo accounts, really required? The answer is a resounding yes. The broker will entice you in with the ability to open a trading account with a very small amount of money; they will offer you lots of leverage. Alarm bells should be ringing in your head at this point – if it was this easy to make money, why isn’t everybody a millionaire?

A demo account and demo practice is necessary for long term success as a trader and there are many advantages to beginning your Forex training on a demo account. Try not to be enticed to the action and excitement of trading real money because as a new trader, you lack the skills required. A demo account will give you the chance to get used to the trading platform and to make silly mistakes. “Whoops I just bought instead of sold” – at least that mistake didn’t cost you anything. “So, that’s how position sizing works”, “Right, now I understand leverage” -those mistakes will blow up your first live account quicker than you could possible believe. Keep your Forex training simple and learn Forex trading the way it will help you the most.

Ultimately, the best way to get the most from your demo trading and demo account is to treat it as real. Admittedly, it doesn’t have the same emotional requirements as live trading, nor the euphoria and excitement. However, it does have the ability to teach you the mechanics and techniques of trading and the chance to create and test a trading strategy, for free.

When you first start to learn Forex trading with your demo account keep a log of all of your trades as you would if it was real. Follow your Forex training strategy entry and exit rules (test that it works). Try to remain as focused and “true to life” as you would if it was real. Otherwise, there is little point in the exercise. Imagine your progress as a trader in stages – your first stage is demo trading. In order to progress to live trading you have to get to stage two. Now set yourself a target in order to get to stage two. It could be based on time such as aiming to go live within 6 months. It could be based on profit, such as aiming to go live once you grow the Forex training demo account by 10%. It could be based on statistics such as aiming to go live once you have done 100 trades with a greater than 55% win rate. It doesn’t really matter too much how you decide. Just make sure you know that you have a vastly greater chance of longer term success if you spend time practicing on a demo account if you decide to learn Forex trading.

 

If you want to Forex learn trading you will need to practice on a demo account. Our Forex training course will provide you with a demo account as soon as you start.

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Bristol Pound Currency will Launch in May 2012

Currency TradingThe English city of Bristol could soon be making history with the launch of the UK’s very first city-wide currency; the Bristol Pound is an initiative designed to boost the city’s economy and strengthen local trade.

The Bristol Pound is not the only alternative local currency used in the UK – the city of Totnes in Devon introduced the Totnes Pound in 2006, while the Lambeth city of Brixton launched its own city-wide currency, the Brixton Pound (B£), in 2009 and this currency is still thriving. However, the Bristol Pound will be the first local UK currency with the backing of a regulated financial services provider – in this case, the Bristol Credit Union. This means the currency can be used to pay not only for goods but also for bills.

As a forerunner to the Bristol Pound, the Brixton Pound serves as a stellar example of local currency; the B£ was even launched in electronic format last year, allowing local users to make instantaneous payments by text. Following the launch of the Bristol Pound notes, this new city-wide currency could also be developed to include an electronic format in the coming months.

Here’s a closer look at the UK’s latest alternative currency – the Why, How and When of the Bristol Pound:

Why?

The purpose behind the introduction of the Bristol Pound is to provide support to the city’s independent retailers and other businesses, stimulate the Bristol economy and build a sense of community among local consumers. Ideally, the widespread use of the Bristol Pound within the city will ensure that money spent in Bristol will stay in circulation in the city of Bristol. This will reduce the amount of money going into the financial systems of larger offshore corporations.

How?

The Bristol Pound can be exchanged with pound sterling, and one Bristol Pound will of course be equivalent to one British Pound. Locals can currently register for a Bristol Pound account online, after which they will be contacted with the appropriate registration forms. Those who choose to get involved with the Bristol Pound initiative are making a clear statement about their support for local businesses and the Bristol community.

When?

The Bristol Pound is due to launch on May 21st this year, and local residents have been asked to submit their ideas for the design of this local currency. The Bristol Pound will be available in £1, £5, £10 and £20 notes, and each will feature an image on both sides. Many Bristol locals are hoping for the honour of seeing their designs or illustrations appear on the brand-new Bristol Pound in May!

Nicky Warner is an enthusiastic writer with a special interest in UK news. Whether you’re an experienced foreign exchange broker, or just starting out with a new MT4 demo account, you’ll find Nicky has plenty of relevant financial and economic news to share.

 

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