DEMO ACCOUNT vs LIVE ACCOUNT

mohamedelnaggar posted:
if someone was succeded in demo by 80% , will hi succes same percentage in real account?

At least for me the answer is NO.

Hi peeterwoolf,
no from my side too. Demo and real live accounts are two different animals. Demo accounts is good for testing purposes only and will give you some valuable information on how a strategy is preforming. Live accounts will give you the insight if the strategy and system is up to par with your expectations.

I agree, kricka, Demo and real account are for different purposes.

That's very true, people always wonder why they make money with demo account not live account, I guess that's the reason. Of course live account use your own money also make huge difference.

csc2009 posted:
Demo and real account are for different purposes.

It really depends. As example: If you use a scalping strategy, then the results can und will be very different. However, if you are a 'swing' trader, results on demo and live accounts will almost be identical.

Regards, Alexander

I haven't traded live but I have made 118.5% on my demo and I also wondered if I will fare the same way on a live account. I am ready for the challenge anyway.

Hi Tafadzwa,
118.5% on a demo account is very good and it can give assurance that maybe your trading is going on the right track. However going live is a totally different story. Aspect like emotions knowing real money is at stakes creeps in. Will you trade the same on a live account vs a demo, No. You should protect yourself right from the start with proper risk management. Like having a stop loss on every position made, then you have secured yourself on open positions. They are placed on the broker server and will execute even if your own computer loses the internet connection or if there is a hardware malfunction. Also you should have a protection on you entire trading account regardless on how many positions are in place. You can build a RMM strategy that includes these two crucial parts.

Hi kricka,
Thank you so much for your advice. I will be sure to use proper risk management. I am looking forward to trading live by the 25th of September 2014

https://www.myfxbook.com/members/umar707/scalping/1020523

I scalp on more volatile pair. Taking about 1-3 pips from the market and I am so good on demo. Spread on GBPUSD is floating between 0.6-1.0. Will it be the same on real account?

Hi Umar,
you might preform the same in a real live account. The different are some aspects that you should pay attention to though.

1. Emotional thinking Live vs. Demo.
In a live account you have real money on the line so therefore you will have a natural attachment to your positions made. Are you ready to lose if the market goes against you? Or do you see this as one of many trades where you lose some and win some?

2. Revenge thinking.
If you are down for the day and are in a position when you feel you know 'better' then where the market is heading. Do you buy another position at a lower/higher price to make up for the mistake entering the market?

3. Are you ready to quit for the day if you are in a good profit and lock in your winnings? Or minimize the draw downs if the market goes against you?

These are a few questions you have to be honest about when going live.

Kricka has a few good points there.

Slippage and transaction costs will become apparent on live trading, especially when scalping 1-3 pips. These can eat up on the performance results compared to a demo performance. Just anticipate this when going live.

I am using EXNESS as my broker and it is fine on real account as well. Same results as on demo!

everything in a world has an compromise 😉
you can try a mini accounts, you will trade on a live account which gives the feeling of a real trade but small amount of it doesn't give you a chance to loose much. 😎
i think is is the best way for newbies to learn

Think that only live account will have you info about 'real true side' of broker. Start with small depo and test broker's execution

I am very much concerned about trading as such. Of course, due to risk exposure we need some time to try and experiment the market. Therefore, I am 100% sure that though there's no adrenaline on trading with DEMO, yet, it's extremely useful to start and spend quite some time on a DEMO account.

Maybe someone has mentioned this before in the thread - I am too lazy to go back and check.
I have a real and demo. Let's take U/J for example. On the demo it has a spread figure of +/-1.8 on my live account 24.
Needless to say then, It will perform wonders on demo, but will it give me even half of that performance on real?

The demo account is a great tool to learn the inns and outs in a trading platform, there lies the true value of a demo account and testing different strategies before going live is another one. 'fxgouveia' there is some adrenaline build up even in a demo account but of course compared to a live account its minimal. How about lets say 10% adrenaline build up compared to a live account, sound like a good round number :).

Psychology is a huge effect. Real money is real money. Trading real money; you see whether you can hack trading or not. Demo always give you a false sense of urgency.