Hi, Can someone give me a tips, new trader here, starting on demo account

JacoAF posted:

KnightsofKornor posted:
Hi, Can someone give me a tips, new trader here, starting on demo account, i think i'm good in demo you can check my profile and trading history, I gain 573.54% on one account and the other account is 285.76% i trade those accounts only in 2 days. but when comes on live account i can't win just like on my demo account. Thanks in advance

I see this all the time. New traders tend to think that these 'enormous' results in short periods of time can be duplicated in a live trading environment. Pro traders (talking bank and institutional traders) will NEVER take those huge risks. So as a new trader you should not even think about trading like that on a demo, let alone a live account. This may sound harsh, but I paid my school fees as a new trader, and I can tel you with absolute certainty, you WILL blow up your account, even a $100 account, in a matter of days!

So here is what I learned as a 'newbie' trader. Firstly, a demo account is run as an internal server by brokers. This means the environment you are trading in is a closed system. Its meant to allow you to 'test strategies', not CHASE that 'make a million in a month' trap most new traders fall into.

So to begin with, you are using your demo account incorrectly. What you should be doing is teach yourself the discipline to manage your RISK (Stop-Loss levels, Correct Trade entries, Lot Sizes, Loosing Trade Exit Strategies, etc.), manage your MONEY (Take-Profit, Trade Exit Strategies, Training Stop Levels, Moving Take-Profit when appropriate, Let winners run, etc.)

You should also try and trade on higher time-frames as a new trader, with smaller lot sizes and stop-loss levels & take-profit levels that are placed, together with trade entry levels in the CORRECT places. The best way to learn this is to use a 4-Hour chart and then look for previous swings. When the market approaches these swings you look how the market behaves around these levels, and then place a buy or sell order depending if the levels holds or breaks. This is called 'high-probability' trading.

Your Stop-loss should always be placed above or below the closest previous swing. ONLY then can you calculate what your volume size should be. Mulani1961 is 100% correct. You should determine what type of loss PER TRADE, as well as TOTAL LOSS for all open trades should be. I personally prefer a maximum loss of 2% per trade, and 8% total loss should all my open trades trigger their stops.

Take-Profit levels should be determined by a Risk/Reward ratio. Here's the big secret to trading manually. You HAVE to maintain a Risk/Reward ratio of 1:2 or better. This means that your take profit level should be at least 2X your stop-loss level, or you struggle to make money. I use between 1:3 to 1:5.

So if I determine that the distance (in Pips) between the swing high/low that I wish to enter and the closest previous swing high/low where my stop-loss is, is for example 50 pips, then I have to look for a previous swing high/low between 150-250 pips for my take-profit level.

This process in its basic form is what Risk/Money Management really means. And this is what you should be practicing on your demo account. My honest advice to you is to learn the basics of trading so you can (1) understand the concept of how to manage your account, (2) learn how to manage your emotions, and (3) learn how markets really move on a chart between historical support and resistance levels (swing highs/lows). Once you have learned and understand these basic concepts, then you can start formulating and testing a trading strategy that works and makes money.

Just a few other tips. Stay away from scalping as a new trader. Stay away from time-frames below 1-Hour as a new trader. Stay away from any account leverage above 1:200 as a new trader. I trade only with 1:50 accounts, I have a 1:100 account, but will close that eventually.

Open a $100 1:200 account to start with, and simply write that money off. I guarantee you, you WILL lose that account. Trade with the smallest lot sizes so you can learn the basics, and get used to the emotions. Keep doing $100 accounts with 0.01 lots until you are a master at picking high probability trades. It took me almost three years of live trading (manual) before I started making consistent profits.

Good luck on the journey!

Thanks, it could help a lot :)

Agree with almost all what,s been said already.
My advice is to look for a broker with some bonus for a start, that will empower Your trading with real money. I guess Admiral Markets still offer 'start account' for 14 days with 200 Euro, that You can multiply and profits up to 200 Euro are for You. Another options are Tickmill and XM that offer some 25 and 30 $ for a start.

As far as trading is concerned, my advices is to choose a proper timeframe for You. Bear in mind that the smaller timeframe the more emotions and price slippages. When trading in M15 or (lower - do not recommend) I advice to focus only during certain hours in the day i.e. overlapping of Trading Sessions (Asian/European, European/American) or after big data releases.

Last but not least, try to plan Your management of trades i.e. how, why and or when You will close Your trades.

Along with the risk management aspect always make sure that you are using the correct Lot size and know how much you will lose if the stop loss is triggered. Don't enter a trade with a 200 pips stop loss with the same Lot size that you would enter a 20 pip stop loss trade

swingtrader49 posted:
Agree with almost all what,s been said already.
My advice is to look for a broker with some bonus for a start, that will empower Your trading with real money. I guess Admiral Markets still offer 'start account' for 14 days with 200 Euro, that You can multiply and profits up to 200 Euro are for You. Another options are Tickmill and XM that offer some 25 and 30 $ for a start.

As far as trading is concerned, my advices is to choose a proper timeframe for You. Bear in mind that the smaller timeframe the more emotions and price slippages. When trading in M15 or (lower - do not recommend) I advice to focus only during certain hours in the day i.e. overlapping of Trading Sessions (Asian/European, European/American) or after big data releases.

Last but not least, try to plan Your management of trades i.e. how, why and or when You will close Your trades.

I got 30 $ from Tickmill. and i reach the maximum 100$ profit. But they want to deposit 100$ first on live account before claiming the profit. how sad.

OK, great. These are the rules of this welcome account. You deposit 100 $, withdraw 200 $ now ...and try to do the similar with XM😄

In the meantime You can create demo acc with Admiral Markets as they first need some activitiy on demo account. As they call You in some 4 - 6 weeks after creating demo. They ask how You are doing? You can say to them that You want to start real one but on welcome account. Rules are these: You open real acc , deposit at least 200 USD and do 1 transaction on EURUSD for 0,01 lots. Then they will open 2nd welcome account for You with 200 EURO balance. Anything up to max 200 EURO of Your profits within 2 weeks from 1st trade is transferable to Your real 'normal' account and hopefully withdraw the max i.e. 200 EUR + 200 USD😄

Good luck!

KnightsofKornor posted:
Yeah i know since i'm a newbie here, i think a lot of things need to consider, but i'm just trying what i can do on demo account and contest before i trade on live account. My first trade was 20 Lots for 10, 000 demo deposit. is it alright or you think i may adjust it lower?

on a 10,000 account you should be risking no more than %1 per trade. Thats 0.1 lots essentially. I see you have been trading 100 lots with no stoploss and that is just wreckless. Try to trade no more than 5 times a day maximum, make sure youre not placing conflicting positions on correlated pairs, dont bet on the news and make efforts to read up on trader psychology in regards to remaining emotionally neutral to losses and wins, trading breaks and whatnot.
this isnt a promotion but take a look at babypips.com they have a plethora of free information ranging from elementary to advanced.

JordanRF posted:

KnightsofKornor posted:
Yeah i know since i'm a newbie here, i think a lot of things need to consider, but i'm just trying what i can do on demo account and contest before i trade on live account. My first trade was 20 Lots for 10, 000 demo deposit. is it alright or you think i may adjust it lower?

on a 10,000 account you should be risking no more than %1 per trade. Thats 0.1 lots essentially. I see you have been trading 100 lots with no stoploss and that is just wreckless. Try to trade no more than 5 times a day maximum, make sure youre not placing conflicting positions on correlated pairs, dont bet on the news and make efforts to read up on trader psychology in regards to remaining emotionally neutral to losses and wins, trading breaks and whatnot.
this isnt a promotion but take a look at babypips.com they have a plethora of free information ranging from elementary to advanced.

Absolutely true! I'd like to use my very first account I opened in 2010. I opened a $1000 account on the Saturday (I think...), and started trading that Monday.

Now the previous few weeks I opened a demo account with the same amount, and I traded like an animal and turned it into $16000 in less than two weeks. And I think I did it mostly with 0.5 lot sizes, which on a demo account is kind of ok. The big think is, I found that when I used stop-losses I almost always lose money, so I skipped the stop loss levels and just sat in front of the PC and opened and closed trades when I feel like it. So basically I was a 'wild-west cowboy' in 'Forex-land'. And it was great. I thought of myself as a 'careful' trader because I only used a 0.5 lot size on a $1000 demo account with 1:500 leverage.

So anyway, I started trading with my live account the Monday ($1000 - 1:500 live account), and I trades small lots of 0.1 and 0.2 to begin with. The first day went great. I think I made $216 on the first day. No stop-loss, and sitting on 1-min and 5-min charts.

The second day I started opening 2-3 trades at the same time. And then suddenly the markets started running sideways the whole day, for no reason whatsoever that I could figure out. So that night I went to bed with three open SELL trades on the USD/JPY, and the next morning I was up at 5am. Still in the red. So I sat with my coffee and watched the charts.... Just after 6 my whole PC screen went totally black, with only a single green candle from top to bottom, and almost instantly my account went from about $80-something in the red to just under -800. In just a few seconds my account was close to margin calls.

Basically what happened was in those days the Japanese Central Bank intervened a lot in the FX markets to slow down the sharp appreciation of the YEN. I got caught out by three open buy trades with no stop-loss. And to top it off, in my inexperience, and out of fear of loosing my account, I went and opened a 0.3 lot buy trade right at the top. So now I'm sitting with 3 losing sell trades (0.4 lots in total) and 1 losing buy trade of 0.3 lots.

The final nail in the coffin was the Non-farm pay-rolls that killed my account the Friday. So my $1000 account lasted a total of 5 days! And that was from trading only a total of 0.4 lots (2 x 0.1 lots and 1 x 0.2 lot)

The point is this. If you trade (manually or EA's) without stop-losses, your account WILL get blown sooner or later. Anything CAN and WILL happen. Play safe, use a stop-loss in the CORRECT place, calculated with your Risk Profile. This way you will always protect your account, which is the Golden Rule of trading.

I attached a PDF file I give to people in my local area that comes to me for Forex lessons. And I'm not promoting and business here. I only do 1-on-1 sessions with people from where I live, and more for the fun of it that a real business. Got my hands full with my web development business anyway. But maybe it will help you deal with the psychological aspect of trading.

My top tip would be to STAY on a demo account. 90% people lose at trading. Be one of the successful ones and don't start!

I doubt you can trade that way on a real account and be profitable. Trading 50 lots on a real account could blow it all in seconds. Not only that, but you won't get the price shown on the charts, because the trade size is huge and will end up going through with a ton of slippage. Demo accounts don't show you this, so it all looks rosey until you get into a trade and start off at a huge deficit that wasn't there on the demo account.

KnightsofKornor posted:
Hi, Can someone give me a tips, new trader here, starting on demo account, i think i'm good in demo you can check my profile and trading history, I gain 573.54% on one account and the other account is 285.76% i trade those accounts only in 2 days. but when comes on live account i can't win just like on my demo account. Thanks in advance

Hey

Maybe these tips valuable to you:

- Learn the basics first
- Learn one trading strategy, stick with it.
- Don’t get overwhelmed
- Don’t freak out when a trade moves against you
- Focus on the price action
- Be realistic
- Don’t trade a lot
- Focus on the daily chart
- Don’t just jump in with no education

Good tips. I prefer hourly to daily chart. Stops are too big on daily which isn't really suitable for newbies with small account