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Is demo trading enough before real account?

lucie_fxtrader
Dec 30 2015 at 14:46
14 posts
Hi all,

As a new trader I am trying to develop strategies in demo accounts before registering for real accounts. Is this enough though for me to be ready to enter the real markets?

Thank you!
kieran (snapdragon1970)
Dec 30 2015 at 15:40
1948 posts
Hi Lucie,

I would advise people to get professional training if they can,before they enter live markets.Demo is fine to test different strategies.One way to prepare you for live markets is to work with a small amount of cash in your demo,say 5000 or less,this way you will be more careful with how your trading and you will feel a bit of pressure to protect it.



Be lucky!
"They mistook leverage with genius".
kricka
Dec 30 2015 at 23:16
92 posts

Demo accounts are for the purpose of learning the platform and for testing strategies and to give new traders experience.

Will it give the trader any proof of how good of a trader he is? No, only a real live account will, as there are so many other aspects coming into the picture when trading live. Just to name a few: the emotional aspect of knowing that real money is at stake, to not overtrade when making mistakes, to have risk management in place on both individual positions and on the trading account as well.

Some info can be read at RMMRobot.com about risk management which should be regarded as a #1 priority to be informed about before trading on a live account. There are so much money to be saved especially for new traders decided to go live after practicing demo trading for a few months, to be be well informed on this subject.

When it comes to the size of the trading account in a live trading environment, for a new trader I would suggest $500 because this will be enough to have proper money management without being underfunded, if the stakes are 0.01 lots or 1000 in volume per position.
" Lock in the profit and minimize the draw down "
LorraineP
Dec 31 2015 at 07:25
32 posts
I would not recommend you open an account with real money until you can double the money in your demo account.
If your strategy is not good enough to do that, then what is the point in putting in real money?
"Do or Do Not. There is No Try"....Yoda
mlawson71
Dec 31 2015 at 10:54
1487 posts
The demo account is for practising what you've already learned in theory, gaining experience and an understanding how the market works, as well as testing trading strategies. It's an invaluable tool for both newbies and experienced traders and that step of the learning process really, really shouldn't be skipped.
That said, you can only learn how to deal with the psychological pressures of trading on a live account. Kieran's suggestion about opening a small live account after you feel confident enough with trading on a demo account is a great idea in that regard.
mlawson71
Dec 31 2015 at 10:55
1487 posts
Apparently my reading comprehension fails me today, Kieran meant opening a small demo account, which is also a good idea.
kieran (snapdragon1970)
Dec 31 2015 at 12:51
1948 posts
It will take a long time to double your account,unless you have some edge and a real understanding of how the markets work,the only way you will get a real understanding is through proper education,you need to understand how this works from the inside before you can have any chance of success.Otherwise you will be an easy target.Its your task to find someone with proven success and that has worked in a Financial Institution or similar.One other topic that I get asked often ,how much should I put into a live account starting off?As little as possible until you get used to the added pressure of trading live.
"They mistook leverage with genius".
Bestforextradingcenter (bestforextrading)
Jan 03 2016 at 08:11
1 posts
lucie_fxtrader posted:
Hi all,

As a new trader I am trying to develop strategies in demo accounts before registering for real accounts. Is this enough though for me to be ready to enter the real markets?

Thank you!

Hi Lucie,

No it is not enough. If you want to trade for yourself you need a mentor. Someone who trades for a living. There are many educators out there who do not trade. Choose your mentor wisely. If they are trading for a living, then you will surely succeed with such a mentor.

Your mindset. I believe this is the biggest reason why many people fail in trading. So if you can focus on the psychology of trading, it will serve you well.

Demo account is good if you are learning how to place your trade and the mechanics of how trading works. However, if you are ready to start testing a real strategy, I will advise you open a small live account for about €100 or $100 and start testing your strategy with 1 micro lot. If you lose 10 pips trading 1 micro lot, you lose $1. No big deal. Your goal is to become consistent.

If you want to learn more, contact me and we can work something out. I wish you all the best with your pursuit for 2016.

Live each day as if it was your last because one day it will be and nothing else would really matter
dianajs
Jan 03 2016 at 13:46
823 posts
No, demo account definitely isn't enough. The demo account is a very important, unavoidable step in learning how to trade, but it's just one (admittedly big) step on a long journey. Once you feel confident enough to open a live account you do need to learn how to trade with real money while risking as small a sum as possible.
IXBONE
Jan 04 2016 at 08:29
97 posts
Demo = NO real buyer and sellers
Live = real buyers and sellers
Demo is useful for (rtm) code testing, backtest for alpha and beta code tests
...nothing more to say
Don Pablo (Antonis94)
Jan 04 2016 at 09:00
10 posts
Hello everyone,i have been trading in a demo account for a couple of days and im thinking of opening a live account,anyone able to suggest anything that would boost up my confidence or help me in general regards trading?
kieran (snapdragon1970)
Jan 04 2016 at 14:35
1948 posts
Antonis94 posted:
Hello everyone,i have been trading in a demo account for a couple of days and im thinking of opening a live account,anyone able to suggest anything that would boost up my confidence or help me in general regards trading?

Yeah read all my posts.
"They mistook leverage with genius".
mlawson71
Jan 05 2016 at 15:29
1487 posts
Antonis94 posted:
Hello everyone,i have been trading in a demo account for a couple of days and im thinking of opening a live account,anyone able to suggest anything that would boost up my confidence or help me in general regards trading?

First of all, I wouldn't recommend opening a live account this quickly after you just started. The main thing that can boost your confidence is your own knowledge and experience, and those take time.
kieran (snapdragon1970)
Jan 05 2016 at 16:38
1948 posts
Antonis94 posted:
Hello everyone,i have been trading in a demo account for a couple of days and im thinking of opening a live account,anyone able to suggest anything that would boost up my confidence or help me in general regards trading?

Get professional training,before you go near live trading or you will get chopped up.
"They mistook leverage with genius".
Graham (garyryan)
Jan 06 2016 at 14:53
3 posts
lucie_fxtrader posted:
Hi all,

As a new trader I am trying to develop strategies in demo accounts before registering for real accounts. Is this enough though for me to be ready to enter the real markets?

Thank you!

Hi Lucie,

I'd say your best bet is to find a broker who offer free funded live accounts for you to practice on. You get to experience the psychological aspects of trading real money, without losing your own.

XM offer free $20 account
SpearFX offer free $30
Silicon Markets offer free $100 account
Tradeo offer free $25

I'm sure there's more about
rob559
Jan 06 2016 at 15:38
1916 posts
LorraineP posted:
I would not recommend you open an account with real money until you can double the money in your demo account.
If your strategy is not good enough to do that, then what is the point in putting in real money?

excellent remark,i would add to this ,until you can double a live 100$ because live is the real deal for feeling the market

btw your cci histogram is a great indicator
lucie_fxtrader
Jan 07 2016 at 10:54
14 posts
garyryan posted:
lucie_fxtrader posted:
Hi all,

As a new trader I am trying to develop strategies in demo accounts before registering for real accounts. Is this enough though for me to be ready to enter the real markets?

Thank you!

Hi Lucie,

I'd say your best bet is to find a broker who offer free funded live accounts for you to practice on. You get to experience the psychological aspects of trading real money, without losing your own.

XM offer free $20 account
SpearFX offer free $30
Silicon Markets offer free $100 account
Tradeo offer free $25

I'm sure there's more about

Thank you so much for this info, I will look into into!
lucie_fxtrader
Jan 07 2016 at 10:55
14 posts
Antonis94 posted:
Hello everyone,i have been trading in a demo account for a couple of days and im thinking of opening a live account,anyone able to suggest anything that would boost up my confidence or help me in general regards trading?

Hi Antonis,

Im glad to see another newbie here, hope the answers of this thread help you as well!
lucie_fxtrader
Jan 07 2016 at 10:55
14 posts
snapdragon1970 posted:
Hi Lucie,

I would advise people to get professional training if they can,before they enter live markets.Demo is fine to test different strategies.One way to prepare you for live markets is to work with a small amount of cash in your demo,say 5000 or less,this way you will be more careful with how your trading and you will feel a bit of pressure to protect it.



Be lucky!

Hi Kieran!

Thank you for all your help. I agree with you, it would be a different feeling to have real money in an account and think through before opening positions. I think I will start with a small real account next week.
lucie_fxtrader
Jan 07 2016 at 10:55
14 posts
kricka posted:

Demo accounts are for the purpose of learning the platform and for testing strategies and to give new traders experience.

Will it give the trader any proof of how good of a trader he is? No, only a real live account will, as there are so many other aspects coming into the picture when trading live. Just to name a few: the emotional aspect of knowing that real money is at stake, to not overtrade when making mistakes, to have risk management in place on both individual positions and on the trading account as well.

Some info can be read at RMMRobot.com about risk management which should be regarded as a #1 priority to be informed about before trading on a live account. There are so much money to be saved especially for new traders decided to go live after practicing demo trading for a few months, to be be well informed on this subject.

When it comes to the size of the trading account in a live trading environment, for a new trader I would suggest $500 because this will be enough to have proper money management without being underfunded, if the stakes are 0.01 lots or 1000 in volume per position.

Hi Kricka,

Thank you for the information, I have read about risk and money management , hopefully I can succeed in practice. I think I will start off with a small amount of 500 while practicing on the demo at the same time.
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