The demo account is a good start if you are a newbie, when I started using it I got a lot of learning and experiences too, yes, of course, there is a difference between a demo and a live account. But a good thing about this is that we got to know about our skill level and got familiar with trading
That’s quite understandable. A demo account is a mere simulator that prepares you for the live market by giving you an idea of how the live market looks. But in no way, it tells you how the live market is moving so that you can practice your strategies and get the exact results. You have to put your money at risk to be sure about how you wish to move ahead.
synaphea posted: That’s quite understandable. A demo account is a mere simulator that prepares you for the live market by giving you an idea of how the live market looks. But in no way, it tells you how the live market is moving so that you can practice your strategies and get the exact results. You have to put your money at risk to be sure about how you wish to move ahead.
Demo is a simulator but the price movement is identical to a real account. You will not get the 'feel' if risking real money but you can test out everything else. That is why I always use demo first for any new strategy
A demo account can prepare you for the type of loss you may come across but you may still not be able to experience the real deal until you trade live. It is obvious a demo account is a great practice field to test different strategies until you get into the grind. Therefore, you must switch to live only if you are really confident and can deal with loss with patience and grace.
UweMoench posted: Demo can not make you well experienced. No matter how much profit you make with demo. The real test begins when you start to trade with real money. When you trade with real money you get emotionally attached to it. When we are attached to anything, we tend to make mistakes. Demo can only help you to know the trading platform and test your strategy.
Well said, I agree with you. That's why you need a good and trusted broker to trade. which makes you less likely to make mistakes. You can trade Assetsfx. Assetsfx is an outstanding Foreign exchange broker. This broker is trustworthy, and they have 60+ Currency options.
Indeed choosing the broker is a matter in forex trading because out there are so many brokers work as dealing desks broker, Choosing an ECN broker will prevent from requote problems compare the broker work as a dealing desk they can monopolize the price because they have their own liquidity, ECN broker forward order directly to interbank market
A demo account paves the way for trading on a live account, But it lacks various elements that a live account has. A live account is really ‘live’ and ‘real’. Here real money is involved, and so are our emotions. A demo account, on the other hand, does not have any real money involved in it. Therefore, there is little to no impact on our emotions while trading. Seriousness can also be affected. As a demo account does not have real money involved, people might not see it as a serious platform. Despite the disadvantages, a demo account really helps one prepare for trading on a real account.
Demo trading does not involve real money, and losing money has little to no impact on one’s emotions. Only the real world of trading with a real account can tell what to do. A demo account does lack certain qualities of a real account, but it is very much effective to make one learn to trade nonetheless. Nevertheless, the capability of making one a good trader cannot be denied, especially if one observes the forex market from a closer angle.
A demo account is meant to give you an idea of how the market functions and how you can execute a trade. It’s important to note that the conditions you see on the simulator are just meant for practice purposes and you better don’t set unrealistic expectations.
I agree to an extent with the argument about how real money feels etc but I still think that it comes down to a lack of practice if you freak out when using live money. A pilot spends hundred or thousands of hours simulating before flying, a surgeon the same on cadavers before operating on live patients. Stress testing and making life uncomfortable so they know how to cope when put in real life scenarios that require them to act with a cool head. Not enough traders do the same on a demo account as they are in a rush to go live and try and make money. Put in the hours, collect the data, stress test your strategy so that you are wholly confident in it. I promise that going live is a smoother transition once you do.
If you can't spot the liquidity then you are the liquidity.
I am not against demo accounts but somehow I feel that they fill you with overconfidence and make you believe that you are ready for live trading. But when you go into the live market, nothing such happens. You have to make up your mind that demo trading is just meant to give you an idea of the live market.
Only a live account can make you earn money. A demo account can only show you how to trade, but being dependent on that is not good. Use a demo account to hone your trading skills and use them appropriately while live trading is the right process of achieving success in forex trading.
You may not learn everything on your demo account. But all that you can do is priceless. You get to know the market without having to take a risk. You learn to execute a trade and make use of different functions of the trading platform.
Demo can make you experienced. All you need is the same dedication you use in live trading.
Live trading is the real test. When you trade with real money, you get emotionally attached to it. When we're attached to something, we make mistakes. A demo account can only help you learn the trading and test your strategy.
When I first started trading, a demo account was quite helpful in gaining a better knowledge of the entire process. As a result, I was able to learn, practice, and develop strategies that fit my trading style. Demo trading, in my opinion, helps me in acquiring useful experience and allows me to grow my skills.
If you're a newbie, the demo account is a good place to start with. When I first started using it, I gained a lot of knowledge and experience. Of course, there is a difference between a demo and a live account. But it helped me a lot in learning trading skills and making me familiar with forex market.
A demo account prepares you for many situations that you are likely to face. But a trader might not feel as much strength of emotional charge as in a live account. Therefore, a demo account fails here. However, if a trader takes this into account and does not feel too emotional while trading or after trading, trading on a live account will not be that difficult.
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Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
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