3. A Demo account provides zero risk for you. Do you hear me? You risk nothing – you should not deposit any money or even sign any contracts with broker/dealer. As a rule, all that you will have to do is to register at broker/dealer web site and download its software. That’s all! Pipruit: Now I understand, why you’ve said that demo trading is a must. I also think the same. But how long I have to sit on a Demo account and how I will recognize that I’m ready to open a real account? Commander in Pips: You should deal with demo and only with demo until you are able to generate profit stably. Other words, you should trade on demo until you create solid and profitable trading system. Pipruit: And what does it mean – stably, solid and profitable? Commander in Pips: We will discuss how to determine the quality of trading system a bit later in our school, but in general, “profitable” means that your system should generate net profit, although it can show losing trades also. “Solid” means that your trading system should generate net profit based on the results of a large number of trades – at least some hundred trades. But this is very general description. If you consider yourself as rational and clever trader or want to become that sort of trader, then you should promise yourself to not open a real account, until you create such a stable, solid and profitable trading system. Pipruit: I think that I have no choice just to accept your offer. Besides, otherwise I will definitely lose all of my money. Commander in Pips: This is a good decision, son. The alternative is to just freely to give your money to some other person. If it’s too hot for you – better step aside. Pipruit: And in general, how much time should I spend on Demo? Commander in Pips: TWell, I think about a year in average. Some traders need much more time – some years to come to good trading system. Pipruit: Such a long time… Commander in Pips: Well, if this is too difficult to you – trade demo at least for 2-3 months. At least you will probably not lose all of your money so quickly after that. When you will start demo trading, it is better is to focus on one definite major pair. Dealing with just one pair after some time allows you better understand the dynamic of this pair and it’s reaction on data releases. You will better remember the previous price action and it will be easier to see the large picture. Also it’s simpler to investigate basic major macro data for just one pair. And the last point – anyone can become a successful trader. In fact, for trading as any other work or duty in life – you need all the same things. These are study, hard work, time dedication, some luck and a lot of common sense. Pipruit: Thanks Commander, I remember that. P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer them soon. Note: FPA ranks are earned in the battles against scam, not in the classroom.