Users those have no experience and market knowledge have much risk in forex,Is Demo better for fresh users? Is they understand risk?
what you you say please tell me about your knowledge and also share yor experience
For those who have no knowledge, demo is definitely the best options to start, rather than directly going live. Demo trading helps one understand the markets well and without staking money, one can test his strategies and plans.
I agree that demo is a good step for beginners. If you learn about forex - for example, from books and online courses - and practice on demo at the same time, it will help you understand risk (and other things too).
Demo account is actually an amazing tool. With its use you can learn trading and experience the real market conditions. You can even backtest your strategy in a demo account and use various Indicators and EA’s to make trading easy for you.
I think you should always start with a demo. It will help you learn the mechanics of trading and give you necessary practice before you go live. Unfortunately, the demo doesn’t really prepare you for the psychological aspect of trading, so it’s a good idea to study about that so you’ll be more prepared for it. Demo also doesn’t teach effective risk management because you can just top up the account if you blow it and the lack of consequences make it easier to risk more and make more. Once you go live, you can take steps to minimize risk, like only investing 1% of your account balance on a single trade, using limited leverage, SL, and so on.