Well the merits of paper or demo trading are being widely debated throughout the forex world since its inception. Some say that trading with demo accounts is meaningless as no real money and emotions are involved while others think that it is important for a trader to learn the basics of trading and to test systems and strategies. They argue that if the trader can’t make profits using a demo account how he will be able to trade successfully with real money. Actually, in my opinion, it depends on an individual. I know few traders who started trading with real money and end up not only losing their accounts but their self-esteems. Demo accounts if used correctly and seriously will definitely help you when the time comes for trading with real money. I also know few traders who don’t follow a system while demo trading. They are only interested in trading profits which are not real and not in learning the processes involved and the working of the system followed while demo trading. The benefits of trading with demo accounts are many but the value gained from it depends on trader’s approach and mind-set.

As I said earlier, well arguable topic and one can go on and on about any part.. however what I would suggest to new comers is to start wit dummy accounts if you know when and how to put a STOP on your investing spree, otherwise dont ever try dummy acocunts because as fxplayer stated earlier, I very well agree to "trading with demo accounts is meaningless as no real money and emotions are involved."

And you might end up in a wrong lane.. at the wrong time!