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Is demo trading enough before real account?
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snapdragon1970

Member Since Sep 12, 2015  1943 posts kieran (snapdragon1970) Jan 10 2016 at 01:46
That's fine if they have a large account,maybe their life savings in some cases ,this leads to a false sense of security,so they use large stop loss,what happens then is when they lose ,they increase the stop or leverage hoping to regain their losses ,until they see their account down to the last 10%.Then they say why didn't I start with a small account.... blogs are full of the same story unfortunately.

"They mistook leverage with genius".
kricka

Member Since Jul 16, 2013  92 posts kricka Jan 10 2016 at 02:19 (edited Jan 10 2016 at 02:20 )
I am an advocate of keeping the risk very small regardless of the stop loss used. It all depends of the funded account. That will determine the stop loss used according to proper risk management. If the account is funded with let say $400 the trader can place a trade of 0.01 lots with around 15 pips stop loss and still only risk 0.50% of the account in case the stop loss is triggered. $500 might bring up the stop loss to 20 pips and still only risking the same percentage of the account.

" Lock in the profit and minimize the draw down "
CheckMate3

Member Since Jan 09, 2016  24 posts Check Mate (CheckMate3) Jan 14 2016 at 09:35
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!

Demo's are worthless. Look at daily charts and forget those that mention a 20 pip stop loss. Longer time frames are easier to trade than short time frames. I look at daily and 4 hour and occasionally 1 hour. When price moves in the same direction on both time frames, you have found a trend that can be traded successfully.

Professional4X

Member Since Jan 05, 2016  1189 posts Professional4X Jan 16 2016 at 17:36
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?



My suggestion is to keep practicing. It takes a lot longer than just a couple of days on demo to be a successful trader.

If it looks too good to be true, it's probably a scam! Let the buyer beware.
Professional4X

Member Since Jan 05, 2016  1189 posts Professional4X Jan 16 2016 at 17:36
For people who are saying 'demos are worthless'.... This is not true at all.

While there is clearly no financial worth to a demo account (can't spend imaginary dollars....), there is however a great deal of worth from the experience that a person can gain from the demo account.

When learning to trade and working toward fully understand the chosen platform, demo accounts are very important.

Demo accounts are intended for practice, learning, testing, and development of skills.

Practice on demo for 6 months, until you have managed to double your virtual investment a few times.

For example, start with a $1000.00 USD demo account, and trade this account IDENTICAL to how you would trade a live account. Once you have managed to generate a sizable 'income' from it, then switch to a live account.

But be prepared for the fact that live and demo can often have substantial differences in your trading results.

Only trade with funds that you truly do not care if you lose.

If it looks too good to be true, it's probably a scam! Let the buyer beware.
CheckMate3

Member Since Jan 09, 2016  24 posts Check Mate (CheckMate3) Jan 17 2016 at 07:25
Professional4X posted:



But be prepared for the fact that live and demo can often have substantial differences in your trading results.
 

I rest my case. Demo's are worthless except to learn how the platform works. I'm in the USA and most brokers demo's expire after 30 days. They are not intended for 'practice' trading for 6 months or longer while you try to double the account.

dianajs

Member Since Dec 09, 2015  823 posts dianajs Jan 17 2016 at 09:53
The difference in result between a demo and a live account usually stems from the psychological effect trading with a live account has on a person, not from some technical differences between the accounts. Or at least, that should be the case if the broker's not making changes between the two. Demo accounts can be useful for more than just learning on them. Imagine you have a brand new strategy you'd like to test. Are you going to risk real money just to see whether it works on or not? Yes, you have to test it on a live account eventually too, but if you don't have some kind of positive preliminary results, what's the point?

lucie_fxtrader

Member Since Dec 28, 2015  14 posts lucie_fxtrader Jan 18 2016 at 09:30
dianajs posted:
The difference in result between a demo and a live account usually stems from the psychological effect trading with a live account has on a person, not from some technical differences between the accounts. Or at least, that should be the case if the broker's not making changes between the two. Demo accounts can be useful for more than just learning on them. Imagine you have a brand new strategy you'd like to test. Are you going to risk real money just to see whether it works on or not? Yes, you have to test it on a live account eventually too, but if you don't have some kind of positive preliminary results, what's the point?


So I suppose you suggest keeping the demo even after opening a live for safety reasons yes?

FradeauX

Member Since Sep 11, 2015  14 posts Patrik (FradeauX) Jan 19 2016 at 07:59
In reality, demo and live turn out to be noticeably different. Speed of order processing seems to be the largest difference, but it can be determinative aspect especially for short termers

Flat space
Professional4X

Member Since Jan 05, 2016  1189 posts Professional4X Jan 19 2016 at 11:03
CheckMate3 posted:
Professional4X posted:



But be prepared for the fact that live and demo can often have substantial differences in your trading results.
 

I rest my case. Demo's are worthless except to learn how the platform works. I'm in the USA and most brokers demo's expire after 30 days. They are not intended for 'practice' trading for 6 months or longer while you try to double the account.


Depending on the brokerage, there may be a delay in market feeds, execution of order speeds, as well as the often substantial psychological differences.

Also, demo accounts do not just expire after 30 days. I have demo accounts that I use for 'practice' and 'strategy testing' on a regular basis. Some of those demo accounts are most certainly over a year old. It varies from broker to broker.

Practice for as long as you need.
Don't let anyone tell you that it is not ok to keep practicing.

Only once you are very comfortable with your skill level on demo, should you then consider going to a live account.

Perhaps move from a demo account to a cent or micro account. Trade it for a while, then once you've done well with that account (500% growth for example), then you could consider moving into a larger account. Of course if you do well enough with a micro account, you should be able to fund a larger account in no time.


Consider any funds put into a trading account to be completely disposable, because the probability of losing it all, is very very very high for new traders. Never trade with funds you cannot afford to lose.


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