Before the days of being able to get a forex trading demo account, brokers, traders and investment advisers alike used to advise people to do what they called paper trading. This is before investors and traders actually put down real cash to execute trades.
They would write down on a piece of paper what stocks, bond, commodities or currencies they wanted to buy and then whey would check the opening and closing prices of each of those securities in the newspaper everyday.
This of course was a much slower process than doing it online on something like a free forex demo account. In addition, this precluded them from doing any kind of day trading because they would get the data only once a day.
I remember being part of a investing and trading competition in the mid-1990's and picking our stocks straight out of the newspaper. We had to do actual research to find the stock symbols for the companies we wanted to invest in because it didn't say on the newspaper.
Then we'd write them down on a piece of paper and keep track of it on a printed out spreadsheet form given to us by the competition organizer. We didn't have access to real time quotes so we used the opening and closing prices in the financial section of the paper everyday.
That's how paper trading on the forex currency market used to be done. No computers, no online real-time data and very little access to research like charts or financials.
Now, people can not only check real-time securities prices, but they can also maintain a portfolio online that tells them exactly how much each security is worth and the total value of the entire portfolio.
Many forex trading platforms include free forex charting data and analysis so you get real-time quotes and analysis included in your forex account. It also of course includes a forex currency converter so you can get live exchange rates for multiple forex currency pairs.
Forex currency trading is no different. There are thousands of forex brokers out there that are offering forex traders their own free forex demo account online. By doing this, potential currency traders can practice and get a feel for what it is actually like before they put real money into it.
This of course was a much slower process than doing it online on something like a free forex demo account. In addition, this precluded them from doing any kind of day trading because they would get the data only once a day.
I remember being part of a investing and trading competition in the mid-1990's and picking our stocks straight out of the newspaper. We had to do actual research to find the stock symbols for the companies we wanted to invest in because it didn't say on the newspaper.
Then we'd write them down on a piece of paper and keep track of it on a printed out spreadsheet form given to us by the competition organizer. We didn't have access to real time quotes so we used the opening and closing prices in the financial section of the paper everyday.
That's how paper trading on the forex currency market used to be done. No computers, no online real-time data and very little access to research like charts or financials.
Now, people can not only check real-time securities prices, but they can also maintain a portfolio online that tells them exactly how much each security is worth and the total value of the entire portfolio.
Many forex trading platforms include free forex charting data and analysis so you get real-time quotes and analysis included in your forex account. It also of course includes a forex currency converter so you can get live exchange rates for multiple forex currency pairs.
Forex currency trading is no different. There are thousands of forex brokers out there that are offering forex traders their own free forex demo account online. By doing this, potential currency traders can practice and get a feel for what it is actually like before they put real money into it.
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