By: Charley Warady
Sometimes you just want to go nuts. You want to go a little crazy, let the proverbial hair down, and let the chips fall where they may. Oftentimes, it involves weekends and a social situation. The same is true for the Forex trader.
After being so disciplined for so long, there are times when the Forex trader wants to take a shot; be a little less disciplined; answer that ever-itching question, "I wonder what would happen if…". There is a large portion of the Forex market that involves human beings. When dealing with human beings, things like this are going to happen. There are going to be times when you want to step out of the box and try something experimentally; exploratory; and possibly even extreme.
You should do that occasionally. The only difference is, don't use your own money. As a matter of fact, don't use anybody's money. Don't use money at all.
Many Forex brokers offer a Forex demo account. The main purpose of a demo account is for the new and novice Forex trader to get a feel for what real trading is all about. The Forex demo account is set up so each person has a certain amount of "money" to use in the real Forex market situation. It's a great idea for the newbie to get his feet wet virtually, and feel more comfortable when he transfers real money into his trading account.
However, once a person is used to trading real money, the Forex demo account is forgotten about and it's a shame. It's not there only to be used by the newcomer. It's actually a tool that can be used in the situation of, "let's get crazy for a few minutes". It can be fun, but it also can be useful. If you are compelled to let loose for a time, the Forex demo account is perfect for that and you're not going to give back your weekly profits in the meantime.
Another valuable use for the Forex demo account as a tool is if you want to try out a new strategy. If you've been reading about a new strategy (and you should), and it sounds interesting to you, there's no reason why you should risk your own margin and deviate from the discipline you've worked so hard to obtain. Go to your demo account and try it out. It may not be that's what it's there for, but it's there so you may as well use it.
If you're trying out a new strategy, then you may not want to go the "let's go crazy" route. You will want to trade it in the Forex demo account as if it's your real account. See if it works for you. Use it as your own little Forex test tube. If you like it, and it's comfortable for you, then it's time to use it in your real account. At least by that time you'll be sure you're not taking a shot in the dark. Forex trading can be stressful enough with all the unavoidable variables. The trick is to limit the variables as much as possible. The demo account is there for just that.