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DEMO ACCOUNT vs LIVE ACCOUNT

CarlosMZ (CarlosMZ)
Nov 10 2016 at 15:51
55 posts
Meltafoz posted:
CarlosMZ posted:
maybe we should not oppose demo against live. why not having both - one to test new systems, other to implement in reality? no to forget that on demos there is no slippage. this can affect profits quite much.


I guess the question of this thread mainly relates not to opposition of live and demo, but to difference of dealing with both of them and outcomes of such difference. What you say is the truth, but it is also useful for new traders to get a better edge of what is demo for and what is live for ;-)


what you say also makes sense, I just understood it differently from the title - demo vs live 😄

NEEnah (NEEnah)
Nov 13 2016 at 07:54
71 posts
I was afraid to put real money in the first 6 months and was trying to get it on demo accounts with different brokers. I vote with both hands for demo testing of anything before going live.

mlawson71
Nov 13 2016 at 11:04
1487 posts
I was anxious about trading with real money for quite a bit longer than six months. I did not have the skill, experience and confidence to do so.

AlGauthier (AlGauthier)
Nov 15 2016 at 07:11
35 posts
Demo is helpful to get a good grip of all the techniques in trading as well as experiment with indicators and the signals they can give. Also the effect of lot size, leverage, spread and commissions are quite well demonstrated. If someone is starting from zero, demo is the important addition to reading guidebooks how to trade. Dealing with the psychology of things is more advanced and only live account can help here.

VickyJones
Nov 15 2016 at 16:03
45 posts
Demo stage in serious trading is a must. No way around it if someone wants to be successful.

mlawson71
Nov 16 2016 at 10:03
1487 posts
Demo trading is a must always, but I would say that if one is truly serious about becoming a trader live account training is also a must. Even if it's just a cent account, one has to learn to deal with the pressure of trading with real money.

xgavinc
Nov 16 2016 at 10:26
235 posts
mlawson71 posted:
Demo trading is a must always, but I would say that if one is truly serious about becoming a trader live account training is also a must. Even if it's just a cent account, one has to learn to deal with the pressure of trading with real money.


Totally agree. Too much demo trading gives a false sense of confidence and security, when you put your own money down (even just a few bucks) you enter into reality and leave the perception behind. Demo is there to learn the platform, learn to code and test EA's, test strategies, get a feel for indicators, get a feel for market reaction, sentiment, events, news and charts... it's not there to teach you success and failure in trading because it doesn't affect you either way.

I compare it to driving a vehicle on a dirt / farm road (demo) vs. driving in traffic on tarmac (real)... you learn about driving in both circumstances, but you don't know stress till you hit traffic for the first time.

For every loss there should be at least an equal and opposite profit.
leopoldo (leopoldo)
Nov 17 2016 at 15:53
41 posts
xgavinc posted:
I compare it to driving a vehicle on a dirt / farm road (demo) vs. driving in traffic on tarmac (real)... you learn about driving in both circumstances, but you don't know stress till you hit traffic for the first time.


Good comparison! I would even say that driving without traffic (demo) is not a real driving, it's just a skill to make the car moving 😉 However, real trading sometimes can be quite bumpy as well 😄 Demo is the initial condition before the live account. It also helps when testing different brokers in terms of spreads and platform stability.

Madjarrah
Nov 18 2016 at 09:10
13 posts
leopoldo posted:
xgavinc posted:
I compare it to driving a vehicle on a dirt / farm road (demo) vs. driving in traffic on tarmac (real)... you learn about driving in both circumstances, but you don't know stress till you hit traffic for the first time.


Good comparison! I would even say that driving without traffic (demo) is not a real driving, it's just a skill to make the car moving 😉 However, real trading sometimes can be quite bumpy as well 😄 Demo is the initial condition before the live account. It also helps when testing different brokers in terms of spreads and platform stability.


I always believed that such thing as platform stability is more about broker services and not type of account? Or what exactly do you mean under stability definition?

mlawson71
Nov 18 2016 at 10:33
1487 posts
xgavinc posted:
mlawson71 posted:
Demo trading is a must always, but I would say that if one is truly serious about becoming a trader live account training is also a must. Even if it's just a cent account, one has to learn to deal with the pressure of trading with real money.


Totally agree. Too much demo trading gives a false sense of confidence and security, when you put your own money down (even just a few bucks) you enter into reality and leave the perception behind. Demo is there to learn the platform, learn to code and test EA's, test strategies, get a feel for indicators, get a feel for market reaction, sentiment, events, news and charts... it's not there to teach you success and failure in trading because it doesn't affect you either way.

I compare it to driving a vehicle on a dirt / farm road (demo) vs. driving in traffic on tarmac (real)... you learn about driving in both circumstances, but you don't know stress till you hit traffic for the first time.


That really is a good comparison. Just like a newbie driver a newbie trader needs a safe environment to learn the basics so they wouldn't make a fatal mistake.

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