If you know what you are doing, forex can be very profitable, so it definitely pays to do some research before you begin. Fortunately, your demo account can keep you very busy learning and testing practice trades and strategies. Follow these tips to gain the most knowledge from your demo account.
Gather all the information you can about the currency pair you choose to focus on initially. You can't expect to know about all the different types of pairings because you will be spending lots of time learning instead of actually trading. Take the time to read up about the pairs that you have chosen. Break the different pairs down into sections and work on one at a time. Pick a pair, read up on them to understand the volatility of them in comparison to news and forecasting.
To make sure your profits don't evaporate, use margin carefully. You can increase your profits tremendously using margin trading. Yet, many people have lost a great deal of profit by using margin in a careless way. Use margin cautiously and only when you are confident that your position is secure and there is a minimal risk of loss.
