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DEMO ACCOUNT vs LIVE ACCOUNT

Raaymenx (Raaymenx)
Jan 10 2016 at 10:58
262 posts
Hello please let me know if anyone can tell me of any broker using GMT+00 Time frame and has Dax30 indices as a tradable instrument

vic84
Jan 11 2016 at 08:13
17 posts
mlawson71 posted:
No, there's no obligation to open a demo account first. As a trader you are working for yourself, unless you are professionally employed by someone to do the same job - so you have no obligations whatsoever. Opening a demo account is simply basic common sense, nothing more, nothing less.



Demo account is just an option, if you have enough money to risk it the you can open real account, but demo account is very much recommended , just for a getting a virtual market experience.

naturallycurly82
Jan 13 2016 at 08:13
19 posts
Demo accounts are great for getting your feet wet as long as you can develop a trading plan and use the same MM that you would use in a live account (Which is extremely difficult once you start losing real $$, which is inevitable but still recovery and successful trading is possible). I've learned appropriate trading psychology in crucial in order to have longevity in this industry. Once you realize that you are your worst enemy, NOT YOUR BROKER, life is so much easier. Their job is to take your money... DUH. You're job is to make sure they are only able to skim off the top (trust me... the cream filling is WAY BETTER than the powered sugar topping ;-)). I definitely agree demo accounts when used properly are awesome! I still use mine for new trading strategies that need to be tested out before implementing them in my normal trading. Life is what you make it, so make the most of it.


Ciao 😎

There is no such thing as failure, just valuable experiences.
dianajs
Jan 17 2016 at 09:54
823 posts
I couldn't agree more. Demo accounts are very necessary to be used as a learning and testing tool, but no amount of demo account trading can fully prepare you for the psychological pressure of dealing with real money. They can certainly help, boost your confidence, but you only fully train yourself on a live account.

kricka
Jan 17 2016 at 21:06
92 posts
naturallycurly82,
your remark about 'Once you realize that you are your worst enemy, NOT YOUR BROKER, life is so much easier'. It is very accurate in live trading. Trading is so much about our preparation and our own ability to cope with pressure and of course how we protect ourself in case our positions and account equity goes against us. To handle all this pressure is extremely hard to manage manually. I would say almost impossible. Why? Because we are emotional beings and in our self we are not robots. Better to hand over this to cBots and EAs and other robots to take over when it's needed, they can be totally emotionless and will carry out the instructions programmed by us. The RMMRobot.com site have some very interesting ideas on this subject.

" Lock in the profit and minimize the draw down "
snapdragon1970 (snapdragon1970)
Jan 18 2016 at 12:31
1944 posts
The markets are driven by humans,not by acting like a robot,That is why quants are always updating or scraping models they have spent months building,human emotion plays a huge part of trading=over reactions and under reactions,this is the moment for making money,models are built on past experiences of human behaviour in conditions of that time period,you can't build a program around human behaviour,it's a long way off.There are no short cuts to trading,it's learned behaviour over a long period.

"They mistook leverage with genius".
fx883
Jan 19 2016 at 07:38
10 posts
Quant modeling is extremely powerful (which is why most large asset management firms have quant divisions). While you're correct in saying it can't tell you the entire story for future market behavior, historical number crunching can and will tell you a story that you as a human trader will never see. Used in conjunction with fundamentals and strong money management, quant based strategies can lead to some very profitable opportunities.

Success is no accident. It is hard work, perseverance, learning, studying, sacrifice and most of all, love of what you are doing.
fx883
Jan 19 2016 at 07:38
10 posts
Something else to note - Professional grade quant software (like the one I use) allows you to create or reconfigure models in a matter of hours, not months. The key to using it properly and profitably is a sound understanding of statistics (along with experience as a trader, as you mentioned).

Success is no accident. It is hard work, perseverance, learning, studying, sacrifice and most of all, love of what you are doing.
IXBONE
Jan 20 2016 at 07:26
97 posts
there are no real buyers and sellers in (forward) demo and backtesting!

dianajs
Jan 24 2016 at 07:51
823 posts
Since demo simply copies the informational output of the live market, technically there are buyers and sellers, and unless the broker's up to shenanigans positions in the demo should have the same result as in the live account, apart from the emotional effect of trading with real money .

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