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Is demo trading enough before real account?
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lucie_fxtrader

Member Since Dec 28, 2015  14 posts lucie_fxtrader Jan 07 2016 at 10:55
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?


Hi Lorraine,

Thank you for your reply. I thought of continuing practicing in the demo but opening a small real account to get the feel of the market and see the differences. maybe practicing strategies on demo before applying on real.

lucie_fxtrader

Member Since Dec 28, 2015  14 posts lucie_fxtrader Jan 07 2016 at 11:50
Wow guys thanks for the replies and help, glad to hear all your opinions really helpful!

mlawson71

Member Since Dec 11, 2015  1487 posts mlawson71 Jan 08 2016 at 18:21
lucie_fxtrader posted:
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?


Hi Lorraine,

Thank you for your reply. I thought of continuing practicing in the demo but opening a small real account to get the feel of the market and see the differences. maybe practicing strategies on demo before applying on real.


That is a good idea, but after you've spent at least a few months practising on a demo account. Up until that moment you'll be learning the software and the basics of the theory behind Forex trading. You may not actually be able to fully understand and analyze the differences between a demo and a real account until you've built that foundation of knowledge. Once you've done that, comparing the demo account to a small live account is a very good idea.

royaltrades

Member Since Jan 05, 2016  1 posts royaltrades Jan 08 2016 at 18:26
Most traders deposit real money and blow through hundreds and even thousands eventually. I agree to practice first. And if you just can't help yourself. check out tradersway. you can deposit as little as $10.00 USD.Keep your lots tiny, like .01. Hope this helps

God first
Professional4X

Member Since Jan 05, 2016  1189 posts Professional4X Jan 09 2016 at 18:43
Strategy development is generally done on a forward trading demo account.

Once you believe you have a strategy that works and are comfortable with the results, then I would suggest opening a real account.

When you open the real account, do so with the understanding that the money you deposit, is probably going to be lost because you are moving from a demo to a live account and there may be problems you didn't foresee happening.

New people have a tendency to dump thousands of dollars into an account when they were first starting to trade, and then get extremely upset when they find out they just lost it all on a couple of very bad trades.

Trade only with funds, that are truly disposable, and won't have any negative impact on you.

Never trade with money that you can't afford to lose.

If it looks too good to be true, it's probably a scam! Let the buyer beware.
kricka

Member Since Jul 16, 2013  92 posts kricka Jan 09 2016 at 21:57
royaltrades,
the problem with an extremely small account is that one can not have good risk management. Taking too high of risk in percentage of the account when placing a position is the outcome even with the minimum of 0.01 lots and a narrow stop loss. The best is if a new trader would only risk max 1% of the account on a single position with a decent stop loss of let's say (20 pips). By having a funded account too small the risk can go way up beyond 1% and that just will put unnecessary pressure on the new trader.

" Lock in the profit and minimize the draw down "
snapdragon1970

Member Since Sep 12, 2015  1943 posts kieran (snapdragon1970) Jan 10 2016 at 01:02
If your going to trade with a stop loss of 20 points ,first your reward is 20+points away at least before you break even,second if your crap at entry points ,moving your stop this much you will get hammered,If your trade has moved more than 5 points against you,take it as a clear sign you entered at the wrong time.a small account with tight stop losses will make you very aware of capital protection.I have heard to many stories about large stop losses that escaped a few times then its wipe out,the market will catch you playing silly games.

"They mistook leverage with genius".
kricka

Member Since Jul 16, 2013  92 posts kricka Jan 10 2016 at 01:18 (edited Jan 10 2016 at 01:20 )
kieran,
20 points stop loss is not small, I would say it is a good stop loss for new traders entering the market. The pressure of a fast moving market as you know 20 pips is just a minor movement. It will give them time to adjust to the movement of the currency pair and when they are ready they can lower the stop loss. Better to have a decent funded account so they can feel comfortable with the pace of the currency pair by choosing a stop loss around 20 pips and a total risk of the account around 0.50-1% on a position.

" Lock in the profit and minimize the draw down "
snapdragon1970

Member Since Sep 12, 2015  1943 posts kieran (snapdragon1970) Jan 10 2016 at 01:22
If you need to use 20 points of a stop loss you shouldn't be trading a live account.

"They mistook leverage with genius".
kricka

Member Since Jul 16, 2013  92 posts kricka Jan 10 2016 at 01:28 (edited Jan 10 2016 at 01:29 )
It does not actually matter if the stop loss is 10 or 20 pips as long as the risk per position for a new trader does not go over 1% total of the account. Up to the trader to decide according to the account funded if he can have a narrow stop loss or a wider one.

" Lock in the profit and minimize the draw down "
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