All the new trader can be benefited from paper account. Many brokerage firms have this paper trading or simulation trading account for beginners, they’ll be funding you with virtual money which is free of cost and there’s no monetary risk involved. You can trade monetary currencies in the forex market by using this tool. As you’re learning and developing yourself as a trader, instead of losing real money its better to start with paper trading account and you can simply open a paper trading account and start trading.
The best thing about paper trading is you’re able to test new opportunities, new strategies without risking your real money. By using this tool you can come to know whether the forex market is suitable for you or not. If it is then you can invest your hard-earned money. If you’re continuously losing money or blowing up your account several times then maybe forex isn’t something where you must be investing your hard-earned money or maybe you should step back and take some more time to determine and learn until you find yourself as a trader.
Your goal must be to prove yourself that whether you know how to day trade and prove yourself as a profitable trader. Until and unless you prove yourself you should stick onto paper trading and also you can test everything you want as you’re not risking a single dollar. In paper trading, you can test your strategies or strategies that you’ve learnt from different traders. Moreover, you aren’t risking anything just to test
Conclusion: I suggest you do paper trading for at least 6 months thinking that its real money and also you should take a paper trading account very seriously. Once you prove yourself then you can switch onto real brokerage account with real money and this will lead you to become a profitable day trader.
Just ask yourself whether you can follow these rules without breaking it. Ask yourself whether you’ll be able to prove yourself as a successful day trader. Can you?