So I’ve started a new demo account in order to demo with $5000 instead of $50,000. I started the $5000 demo account yesterday. I think I might be able to come up with $5000 to fund the account once I’m ready to live trade. I have contacted someone I know and have explained my plans and they have agreed to think about providing me with the money to fund the account. The only thing I need to do now is investigate FXCM more thoroughly because that’s where I’m planning to open an account. I need to find out if their demo trading system is in any way different from their live trading platform. I understand some of these companies try to trick you by setting up their demo to deliver generally good results.

As you can see I have managed to increase my account value by 1240.27 in 2 days. Wouldn’t it be fantastic if I could have the same results once I begin to trade live?

Here’s my latest report card from my demo forex trading account. I have brought my account on the plus side of the initial deposit. Of course this is not real money so there’s no real benefit to me other than that of being able to say that I am learning as I go along. I am still seriously leaning towards trading with real money in a few weeks. Of course I’ll be going against the advise of all the experts. They don’t think poor people and people who are strapped for cash should trade forex; but I suspect that’s because these people would usually dip into the little money they have to fund their accounts. I did almost sign up for a real account and had intended to fund the account using my credit card; however I did not go through with that plan. I can see that it is a foolish plan. I will have to find the money to fund the account without dipping into household funds or using credit cards.

Here’s the latest report card on how I’m doing trading forex. I have figured out that although I’ve been making a profit with my trades, if this were a live account I’d be registering a loss rather than a profit because I am trading to bring my account balance back to the amount of my initial deposit after some bad trades in the beginning dropped my balance below the starting $50,000 in play money. So I’ll be needing to watch out for that once I start trading for real.

What I need to do now is research the following as related to forex trading:

• Usable margin
• Necessary margin
• Floating P/L
• Equity