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Understand the basics of forex trading.
You can get a basic knowledge of forex trading by reading Forex Trading FAQs and Forex Basics on this website.
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Learn how to do fundamental analysis in forex trading.
Read How to Perform Fundamental Analysis in Forex Trading for tips on developing skills of fundamental analysis.
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Grasp how to perform technical analysis.
Read How to Perform Technical Analysis in Forex Trading, Technical Analysis Indicators and Technical Analysis Terms.
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Understand risks and money management of forex trading.
Forex trading involves high degree of riskes. Thus it is essential to apply appropriate money manamgement to control those risk. Read Risk Management in Forex Trading for tips on money management.
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Choose a good forex broker.
It might be helpful to choose a forex broker first before demo trading. Thus when you do demo trading, you get to know the system of your chosen forex broker, and therefore save time. See How to Choose a Best Forex Broker.
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Demo trading.
When doing demo trading, it is important to treat it like real trading. For instance, a trading plan needs to be developed before opening a position, risks should be controlled and money management rules followed.
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Refine trading strategies.
Use demo trading to refine trading strategies. Analyze demo trading results, take notes of the errors made, and make proper adjustment.
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Real trading.
Start real trading only after constant winning trades have been achieved.
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Review real trading performance.
The results of real trading need to be evaluated each day, and lessons should be taken.
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Continuous study and continuous improvement.
There are always new developments in forex market, and new tools and techniques never stops emerging. One needs to keep on learning so that continuous improvement could be made in forex trading.
