Basics

Demo account

A free practice account using live market prices and virtual money. The place to test a plan for 50 trades before risking anything real.

Also called: demo

In practice

You open a demo with $10,000 of virtual funds and trade your breakout strategy for six weeks exactly as you would with real money: same pairs, same session, same lot sizing. After 50 trades you can measure your real win rate and average R without risking a cent.

Why it matters for traders

A demo is where you discover whether a strategy actually has an edge before real money is on the line, and where you prove you can follow your own rules. It cannot replicate the fear and greed of real losses, so it is a starting point, not a finish line — but skipping it almost guarantees you pay tuition to the market instead.

Common pitfall

The pitfall is treating demo like a video game: over-trading, using huge lots, and ignoring costs because the money isn't real. Demo builds unrealistic habits that collapse the moment real fear appears. Trade the demo exactly as you will the live account — same sizing, same pairs, same rules — and graduate only after a full 50-trade sample proves an edge. A demo used recklessly teaches bad habits more reliably than it teaches skill.

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