The first thing you should do if you are a beginner in forex trading is to open a forex demo account. This will give you the opportunity to learn and practice forex trading without the risk of losing money in the process. Additionally, you can use a demo account to test different trading systems. Choosing a profitable trading system is vital if you want to succeed in forex. So, you probably have to test a variety of systems until you pick one that fits your trading style and generates profits for you. It is not too difficult to find trading systems.
There are numerous available on the web. Some of them are free and for some others, you have to pay. Most of them have a refund policy of 30 or 60 days, which give you the opportunity to test them. If you don't like the results, take your money back. You should check your system in two different ways before you start trading with real money. The first one is back testing.
Back testing is the process of testing a system using historical data of at least 6 to 12 months period. This will give you an idea of profits or losses, if you had been following the system during their period. However, past results are not a guarantee of future profits. Additionally, historical data do not always show the truth and are a different from real price movements. The second and most accurate way is testing a system on a real-time data using a demo account. The only disadvantage of this testing method is that it takes some time to get the clear picture of the system's performance.
You can use day trading or scalping systems and many trades will be generated each day. You will have a clear picture of system's performance in a short-time. Whatever system you decide to use, you should first test it on both real and historical data before you implement in your forex trading strategy. Fortunately, most brokers offer a free demo account that makes the whole process of testing easy and helps you improve your forex trading with zero risk.