What if you could make an unlimited amount of practice using the same trading systems that people who live shop manual? Would you like to help you become a better trader? Well, it could not hurt. At least you could figure out what works and what does not without losing money.
The bottom line is that the foreign exchange market is one of the easiest markets to make trading practices in an environment that is almost exactly the same as the live market environment. In addition, there is software available that makes testing strategies on historical data, easily, cheaply and without risk. If you are serious about becoming a professional Forex trader, or even if you just want to see what this "Forex thing is about, then it is the practice of trading for you.
First, there is a demo. Demo trading is available from almost any Forex brokers and allows you to quickly set up an account with play money, but gives you the same capabilities and market experience to the real account. This type of simulated forex trading is very important because it allows you to try a trading platform and experiment with different types of entry orders before any risk real money. Many times you can demo trade for as long as you want, as long as you consistently profitable.
The second type of simulated Forex trading is a call backtesting. You can buy software that will allow you to go through the actual historical data on the currency pair and place trades with play money just as if you were trading during that time. This will give you great insight into how a couple of moves and reacts in different situations. Although past performance is no indication of future results, much more experience can only help you become a better trader.
So the next time someone tells you that trading is risky and dangerous, telling them: "You do not have to trade with real money from the start, you can always do a simulated Forex trading the first " This is how smart traders learn to trade.