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How To Master Forex Trading Without Trading Real Money

Mastering forex trading is not an easy task, and you're probably aware of that already. In fact, you must know that one of the ways to be good at trading is to risk your money. But to you, that's just a tough pill to swallow.

Whether you're starting out or you just blew up a couple of accounts, all you want is to find something sure. 

So, you're here because you probably crave for an answer to this question: how can you master Forex without risking your hard-earned dough? 

Well, this article will offer you five practical ideas for you to become the awesome Forex trader you dream of being -- and the great thing about these ideas is that they don't involve trading with your actual capital.

Try Reading A Whole Lot

scattered books in a library

Perhaps the best way for you to comprehend currency trading without doing the actual thing is to immerse yourself in reading. 

There's a wealth of information about the financial markets coming from books and articles that could serve you well in your quest for mastery.

Think about it. Written words have been the primary way information has been transferred throughout history, and trading knowledge is undoubtedly no exception.

There are so many great minds in the world, especially those who are masters of their craft, who attribute reading to be the key component of their success.

Look at Warren Buffett, a highly successful individual who still devours as many books and reading material as possible in his advanced age.

If you decide to devote a lot of reading time in your journey as a trader, you can reinforce what you know and, of course, learn concepts that you may not be familiar with.

You will also become equipped with new information or even lessons from history that may come in handy in an ever-changing market.

Action Step:

Assess all that you know and do not know about trading. Then, prioritize which one would best serve you at the moment and on a longer-term basis.

For example, you are familiar with trading indicators, but you don't know how to combine each of them to form a trading methodology.

What you can do is look for a book that covers strategies or one that combines technical tools to develop a solid trading system.

Try looking for a book using the search bar below to find the best book for you.

Find A Mentor

man laughing with arrow on his back

Another way to gain mastery in Forex is to look for someone who can guide you in the process. A mentor is someone who will lend you his time and experience in trading.

That someone doesn't have to be paid to monitor you 24/7; a mentor can simply be anyone skilled in trading that you can reach out to whenever you need help.

Understandably, not everyone has this luxury, but if you are fortunate to be acquainted with someone who trades and has an excellent track record, the best thing you can do is pick that person's brain so you can shorten your learning curve.

The very purpose of having a mentor is to absorb the information from someone who has already been there.

What another person knows and experienced will help you replicate some of what works and avoid what doesn't.


Still, no matter how good of a mentor you were able to find, you have to take each advice with a grain of salt. Now, you may question why mentors were advised in this article in the first place. 

Well, the answer is that you have to establish a level of independence and objectivity in trading. Ultimately, it's your account, and you're the one trading it and not somebody else. 

So keep in mind that the purpose of a mentor is just for you to shortcut learning and not for turning over your every trading decision.

Learn From The Best


Learning from the best is all about following or studying the examples that successful traders and investors have set forth. 

It is similar to having a mentor, but in this case, you are learning from another individual minus the same level of interaction that's afforded by a mentor.

This is much more convenient for those who can't get a personal guru because the information shared by well-known traders are more accessible. 

For example, if you want to understand what goes on inside the mind of one of the world's most revered traders in George Soros, there are several books authored and co-authored by the billionaire hedge fund manager himself that's available for you to consume.

Ray Dalio, another billionaire investor, often shares his thoughts about the economy via Linkedin -- even his life and work principles are available to everyone and are all packaged in a book he wrote.

The benefit of learning from successful traders and investors is that it's also another way to fast track mastery; it's also like being handed a blueprint with a proven success rate that you can just follow.

Here's an example of Ray Dalio sharing his "holy grail" in investing.


When selecting someone to follow, you can emulate the successful trader's methodology and approach -- unless you want to go in-depth and study the person's philosophy too.



Backtesting is all about understanding the performance of a technical trading strategy by testing them using past price history, hence "backtesting."

When you backtest, you need a charting package that will load the historical price data, and you will also need your trading strategy

The process of backtesting will allow you to understand how well your strategy performs historically.

Although backtesting results don't mean that actual trading results will be identical, it does serve as a helpful gauge for learning what's probable.

For example, the combination of your technical indicators yielded a win rate of 55% from a backtesting session spanning over a price history of about five years. 

This means that when implementing the same mix of indicators in real-time, it is likely to produce the same rate of success.

How does this help in gaining mastery? 

Well, through the process of simulated trading. Certain applications, like Forex Tester, allows you to trade offline and on past price data. 

It gives you a feel of real trading, but what's even more helpful is that you can tweak the speed of testing, which will allow you to get the results as soon as possible. 

You can virtually trade 200 times in just a few hours, and by the end of your session, you have the statistics of your strategy ready.

Action Step:

Try out Forex Tester and start backtesting. You can download your copy by clicking the button below or if you need more information about backtesting, we have a complete resource page for you to check out.

Demo Trading

arranged charts

Finally, demo trading is the last one on this list, which is possibly the most often overlooked method of Forex trading mastery. 

A demo account doesn't involve actual money, but it simulates real trading.

It's similar to backtesting, wherein you have access to a charting software or a platform where you place orders.

But the advantage of demo trading is that it's not limited to technical trading strategies since the real-time feed of prices is also perfect for trading economic news release. 

And it's free. You can practically start trading on demo with most Forex brokers.

The aid of a demo account will allow you to put everything you know into practice; it offers the next best thing to improve your skills and possibly even profitability. 


The only thing you have to keep in mind is that you need to treat it as though you are trading with real money.

You will only appreciate the benefits of a demo account if you take it seriously.

It's also best if you try to maintain profitability with a demo account for a good six months to a year before signing up for a real one just to ensure that you are more than ready.

So, there you go. These are all the ideas that you can try to start gaining master-level skills in Forex trading. We hope you enjoyed reading and feel free to comment your thoughts about this article on the comment section below.

2 thoughts on “How To Master Forex Trading Without Trading Real Money

  1. Trading, while not something I will do, is an interesting concept.  Reading, a lot of it, is important to anyone getting forward in life.  I’ve been reading a lot of things lately.  Practicing your trade before you do it, is good tactic to avoid failure.  If you can get somebody who’s a friend to mentor you, don’t pass it up! Practicing 6 months to a year first requires a lot of persistence and determination.  A good post for those who want to get into trading for a living.

    1. Thanks for your comment, Anthony! Since you’re already in reading mode you might want to consider taking our beginner course just to give you some background about trading. Forex Beginner Course

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