Simulated forex trading is a really great benefit for beginners who want to practice their forex trading skills before risking any money. With simulated trading you get the complete functionality of an online forex broker and are able to make trades just like you would in a real market.
You will get to use real charts and see live price data as changes occur.You will fundamentally experience the real forex market by getting access to the same live streaming data that professional traders use to make trades.
Disadvantage of Simulated Forex Trading:
simulated forex account is great to get started and learn all the technical things, but the major problem it presents is the inability to feel emotions like you would in the real market. It is difficult to learn how you would react in a bad/good real situation with your hard earned money riding on the trade by using a simulated account.
What this means is that you will probably not learn what it’s like to fight fear and greed as the market plays out in front of you. With a simulate account you could put on a huge $2,000,000 and make thousands if the market goes your way. But do you think you would ever make such a trade in real life with your hard earned money at stake?
You can also loose a huge amount of money and never experience the same emotions as you would if the trade was real.
However the benefits with a simulated account are even greater.
You will learn the principles of money management and technical analysis which are fundamental to a successful forex trading strategy. You will see how the price reacts to different economic conditions, different times of day, and understand how different indicators work.
To learn the psychology of trading, and understand how to cope with fear and greed you can start by getting a mini forex account. By trading with small amounts of real money you will understand psychology much better than with a simulated account.
However your first step to learning forex trading is getting a simulated forex account. Once you become comfortable and understand the technicalities you can move to the next step by getting a mini forex account and start trading with a small amount of real money.