This is the third article in our series of Forex for Newbies.

(To get maximum benefit from our `newbie` articles we recommend you read them in the correct order: to read first article click here and the second article click here).

Once you have familiarised yourself with the Elliott Wave Principle (article 1), and with the basic jargon and concepts of trading Forex (article 2), you will be ready to open a demo account, which is what this article is about.

It really does not matter who you open the demo account with because you will be trading with `fake` money. The main purpose is to use the demo accounts for practice, practice, practice. As you will see there are some major online forex companies and many minor ones and at this point in your forex education it`s a good idea to go ahead browse through the websites of all the major online forex companies to get an overview of what they provide.

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This is our second post in the series, Forex for Newbies. If you are completely new to trading, you will need to read these posts in order to gain maximum effect.

In order to trade forex using Elliott Wave, you need to purchase and read the Elliott Wave Principle book first in order to predict market turns and direction.

We are trading from an Elliott Wave perspective, so the first post necessarily covered the basics of the Elliott Wave Principle, and pointed towards useful resources such as the free online History`s Hidden Engine movie which explains the concept of Elliott Waves so well.

Once the basics of the Elliott Wave Principle are understood, it can be seen that it can be used to predict market turns and direction. This is powerful information and you can use this to trade forex online from the comfort of your own home, in your pyjama`s if you like! Before beginning to actually trade, you will need to learn some basic terminology and play with some online trading platforms.

Currencies are always traded in pairs, as the value of one currency is determined by comparing it to another. The majority of currency pairs will have the USD included, and if not are termed `cross currencies`, such GBP/EUR.

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Imagine if you will, you have a computer at home with a broadband internet account. You discover that you can do something called “trading forex” online. At the same time, you discover a principle that allows you to predict the direction a forex market will move in. This is very powerful stuff. You could get rich!

A recent discussion with a colleague, who asked what I did with my time at home, led to me wondering about how to convey to a total newbie how to trade forex using the Elliott Wave Principle.

I started by pointing him in the direction of the wonderful online documentary, History`s Hidden Engine at the Socionomics institute. This will give anyone who has never heard of the Elliott Wave Principle a brief overview of the big idea, and how it can relate to market movements.

Next I advised him to purchase a copy of “Elliott Wave Principle” by Frost and Prechter. I use this book as a textbook, on a daily and even hourly basis. It seems there is always something new to learn about the Elliott Wave Principle, and this book is invaluable as a thorough guide. I advised him to read it at least twice.

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