Jaco Ferreira, your posting is very accurate and holds wisdom of being through different faces of trading. For new traders coming into the market they should practice patient and strict risk management. To go for making big money is of course a totally wrong approach. My suggestion is to keep a low risk profile on both individual trades and of the trading account as a whole.
I will try to give an example here. 0.33% risk per trade of the account and a maximum of 3 positions opened at the same time, that will be a total of 1% risk if all 3 positions are in place. By practising this method the trader will not see any big advancement or any big drawdowns as well. It also will allow some average down so to speak but within the 1% total risk of the account. To be right on the entry level of a single position is very hard, and by keeping the risk down on single positions will give the trader a chance to enter several times. This strategy however requires following the plan 100% and to never go above the 1% risk of the account rule.
Both type account of account has its own importance and it depends on the experience of a trader too, a beginner with opt for Demo account to gain experience and an experienced trader will opt for both depending on the needs.
Hello people,My name is Antonis and i am a new trader so please forgive me for this question,is it necessary and i mean like an obligation for a non experienced trader to open a demo account first and then a live one?
Antonis94 posted: Hello people,My name is Antonis and i am a new trader so please forgive me for this question,is it necessary and i mean like an obligation for a non experienced trader to open a demo account first and then a live one?
Hi Antonis, nope, you are under no obligation to first open a demo account and then later go onto a live account. However, and this is a big one, if you are completely new to trading, and you go directly to a live account, I can almost guarantee you with 100% certainty, that you will blow that account within the first week or two. And I think most experienced traders will agree to this in some form.
The problem is this, when you are completely new, you probably have not yet learned the basics of trading. By this I mean that you have not yet learned and tested things like reading and interpreting Price Action Movement, Risk and Money Management, Basic Candlestick Formations, Support and Resistance, Fibonacci, etc.
To add to this, it is complete suicide to trade live without a tested trading strategy. If you are a new trader, you probably will have no experience trading with EA's (Automated Trading), so I would assume that you are trading manually. It's almost like a soldier. The soldier must first go through training before he/she goes into battle. You need to learn how to react to market conditions based on your training, in order to cope with the emotional roller-coaster you will experience with live trading real money.
So to answer your question, first learn the basics with a demo account, and while doing so develop your own tested Trading Strategy and trading rules (when to enter and exit trades), before you attempt trading on a live account.
Hope this helps. Good luck with your trading career!
No, there's no obligation to open a demo account first. As a trader you are working for yourself, unless you are professionally employed by someone to do the same job - so you have no obligations whatsoever. Opening a demo account is simply basic common sense, nothing more, nothing less.
mlawson71 posted: No, there's no obligation to open a demo account first. As a trader you are working for yourself, unless you are professionally employed by someone to do the same job - so you have no obligations whatsoever. Opening a demo account is simply basic common sense, nothing more, nothing less.
AVERTISSEMENT SUR LE RISQUE ÉLEVÉ : Le trading de devises comporte un niveau de risque élevé qui peut ne pas convenir à tous les investisseurs.
Leffet de levier crée un risque supplémentaire et une exposition aux pertes. Avant de décider de négocier des devises, examinez attentivement vos objectifs dinvestissement, votre niveau dexpérience et votre tolérance au risque.
Vous pourriez perdre une partie ou la totalité de votre investissement initial. Ninvestissez pas largent que vous ne pouvez pas vous permettre de perdre. Renseignez-vous sur les risques associés au trading de devises et demandez conseil à un conseiller financier ou fiscal indépendant si vous avez des questions.
Toutes les données et informations sont fournies "en létat", uniquement à titre dinformation, et ne sont pas destinées à des fins de trading ou de recommandation.
Les performances passées ne sont pas indicatives des résultats futurs.