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Is a demo account really neccassary?
Mitglied seit Aug 05, 2021
394 Posts
Dec 21, 2021 at 16:41
Don't agree with this. Demo accounts are one of the best hands on tools out there and while they may have blind spots in regards to risk management and psychological aspects, they still teach valuable lessons and stop us from incurring losses later on. You can also test your strategy on demo. Why rush into a live account with real money at risk (no matter how little) when you have no idea if you have a good strategy and have no experience? My advice is to trade on demo, hold yourself accountable for wins and losses (for example, reward yourself with dinner at your favorite restaurant for making x amount of profit or make yourself do so many pushups for losses) and research psychological aspects of trading simultaneously so that you go in well-prepared.
Mitglied seit Mar 16, 2021
447 Posts
Dec 22, 2021 at 02:51
ForwardX posted:
Yes, it helps in making aware of the trading environment as well as helps to test the trading strategies before going live.
It is very important to use a demo account. From here, things get trickier for a trader. So it is important to practice the demo as well as create knowledge.
Mitglied seit Mar 16, 2021
447 Posts
Dec 26, 2021 at 13:38
Imamul posted:
when you will trade in a demo account , this experience will support you when trading in a real account , but there is a difference between demo and live trading result.
As a trader, I need to use the demo platform to gain experience or learn from Mistake. It builds the profit potential of every trader.
Jan 09, 2022 at 14:41
LukeRachel posted:Imamul posted:
when you will trade in a demo account , this experience will support you when trading in a real account , but there is a difference between demo and live trading result.
As a trader, I need to use the demo platform to gain experience or learn from Mistake. It builds the profit potential of every trader.
A demo account is essential to familiarize yourself with the basic trading concepts. Demo can also be useful for testing different strategies to determine the percentage of success.
Mitglied seit Mar 16, 2021
447 Posts
Jan 10, 2022 at 02:11
Akasuki posted:LukeRachel posted:Imamul posted:
when you will trade in a demo account , this experience will support you when trading in a real account , but there is a difference between demo and live trading result.
As a trader, I need to use the demo platform to gain experience or learn from Mistake. It builds the profit potential of every trader.
A demo account is essential to familiarize yourself with the basic trading concepts. Demo can also be useful for testing different strategies to determine the percentage of success.
Of course, the Demo Platform is the best site to develop a trading strategy. Where knowledge can be developed like live trading.
Mitglied seit May 14, 2019
26 Posts
Jan 11, 2022 at 18:56
I tend to suppose that it's necessary for those ones, who want to be a careful trader. If you understand that you can't take risks on yourself, then perhaps you have to start from demo trading. In this case you will be able to get acquainted with the whole system and understand whether this activity is suitable for your temper or not. If you have already understood that it's your activity, you can start from a real account but from the small volumes. I mean deposit of course. You can deposit 10% from the total amount of money which you allocated for trading and try to look at the graphics and make an analysis.
Mitglied seit Mar 17, 2021
494 Posts
Jan 13, 2022 at 19:53
Imamul posted:
demo is really important there is no way to ignore but i have seen most of the traders above all the beginners level dont believe the importance of this trading place at all.
A demo is the best place to learn the trading.
Mitglied seit Jun 26, 2020
323 Posts
Jan 14, 2022 at 06:59
you can trade in a demo account , its good but sometimes its more important to trade in a micro account to ensure live trading knowledge and experience.
Jan 14, 2022 at 16:44
UweMoench posted:
That called success in Forex doesn't come only by practical learning. We attain success by a combination of both theoretical and practical knowledge of which Demo only guarantees the practical.
Should be practiced with real money. It can be used to develop psychology. And if there is real money, the original practice is complete.
Jan 15, 2022 at 13:54
It depends on which goals you want to achieve with demo account.
If you are completely new to trading and you don't know how to use the trading platform, then demo account will be of great help for you to learn how to use that in the most eeficient way. More than that, demo account is a great thing to check some new trading ideas. Before implementing new trading strategies, you definetely need to know whether these ideas have anything to do with the reality before risking your real money.
However, you should understand that trading demo will never make you a good trader. THe fact is that there are so many things which are not present in demo trading, for example, trading osychology which affects traders greatly. You definetely need to train and improve your emotional well-being in order to resist huge psychological pressure. More than that, there are no slippages and requotes and fees when you trade demo. These things also need to be calculated and paid attention to while trading real account.
If you are completely new to trading and you don't know how to use the trading platform, then demo account will be of great help for you to learn how to use that in the most eeficient way. More than that, demo account is a great thing to check some new trading ideas. Before implementing new trading strategies, you definetely need to know whether these ideas have anything to do with the reality before risking your real money.
However, you should understand that trading demo will never make you a good trader. THe fact is that there are so many things which are not present in demo trading, for example, trading osychology which affects traders greatly. You definetely need to train and improve your emotional well-being in order to resist huge psychological pressure. More than that, there are no slippages and requotes and fees when you trade demo. These things also need to be calculated and paid attention to while trading real account.
Mitglied seit Dec 11, 2021
3 Posts
Jan 15, 2022 at 14:50
I think it is important to use a demo account to get a feel of trading especially if you are a beginner trader, however like a few people here have mentioned, it does not give you the experience of trading psychology that you feel when actually trading with a real account.
I think a mix of both (demo and real) where the real only has a small balance, which you can use to build your trading experience, work on your strategy and build trading psychology is definitely ideal.
I think a mix of both (demo and real) where the real only has a small balance, which you can use to build your trading experience, work on your strategy and build trading psychology is definitely ideal.
Oh it just hit my TP.
Jan 15, 2022 at 15:57
James_Bond posted:
What do you think? Nowadays, when you can open an account with as minimal as $1 deposit, does a demo account works for the best interest of the trader or not?
I will clarify; the point of a demo account is to get a feel of forex trading, however it creates the psychological illusion of not caring of any losses/wins and taking enormous risk without having to confront consequences (psychological side).
Short term, a new forex trader won't need to deposit any funds to try trading, however longer term, he/she is most likely to lose his/her first deposit after trading a demo as those are 2 different trading environments.
So why not start with a real account in the first place? A demo account will just make a newbie trader over confident thus causing him to deposit more than what he/she would deposit for testing purposes in the first place. Therefore, I think a demo account is simply disastrous for new traders and is actually achieving the opposite of what it should.
In my experience, demo trading is very necessary. If a trader gets over confident with demo account, he will be over confident with live account as well. By losing real money, he will lose confidence. There is a saying in the market " One day you did not have experience but had money. Today, you have experience but do not have money to trade with".
Jan 15, 2022 at 16:39
Demo accounts are absolutely necessary for new and experienced traders to try out new trading techniques before you put real money on it. My trading philosophy has been tested since 2018 with demo accounts to see if they were viable long term. Once they were, I put them in real money accounts in 2021. The demo accounts are still active and have similar results with the real money accounts till this day.
Integrity is the seed for achievement. It is the principle that never fails. - Earl Nightingale
Jan 20, 2022 at 20:15
Predominantly yes. However, if you have already learnt plenty of information about trading and investing, then perhaps you can start off from the real account. The main here is to understand that you will definitely have losses on your first steps. There are no traders who haven't faced losses on his first steps. Basically, you can start from real account, but I would recommend you to prepare a particular sum of money which will be used as practice. For example, if you have 100$, then you can allocate 50$ for practicing and the rest part you will use after getting some experience.
Jan 27, 2022 at 18:05
LukeRachel posted:ForwardX posted:
Yes, it helps in making aware of the trading environment as well as helps to test the trading strategies before going live.
It is very important to use a demo account. From here, things get trickier for a trader. So it is important to practice the demo as well as create knowledge.
You are correct. Demo accounts can help you develop skills. However, a systematic approach is required. It is not enough to trade demos randomly.
Mitglied seit Mar 16, 2021
447 Posts
Jan 30, 2022 at 08:22
skihav posted:
I would say that it is really necessary. For a trader, this is exactly the minimum knowledge that allows you to start without losses.
Some knowledge is required to make a profit. Which will be a great achievement in trading.
Feb 02, 2022 at 07:44
In my opinion, it is extremely essential for all novices to begin with demo accounts and learn the basics about currency pairs, software, and learn about risk and money management strategies. Even though it doesn’t guarantee profits in a live account, it is still essential for the overall growth of a trader.
