In my opinion, it is because you can test your psychology, apply risk management, and overall put your plan to the test, even if it is a demo account. You get real-world experience that will aid you when you begin trading live.
I have to agree with everyone saying that demo accounts don’t prepare you for the live market conditions. You do get an introduction to the live market through your demo account but when it comes to understanding the live market, you will have to trade in the live market. You can make use of a micro account for that purpose.
Demo trading accounts are very different from a real trading account. Although it is a good learning platform for newbie traders, in order to gain actual experience and understanding they will have to operate a real trading account with their own money. The market movements and trends need to be seen in real time by new traders, so that they can become skilled traders over time. The kind of emotion that a trader will have to deal with while engaging in forex trade, can only be felt when they are trading on a real account. And achieving emotional stability is something that you get after you start trading in real life.
Yes, demo trading can not make you perfect in trading. No doubt you learn a lot about trading and acquire various skills while trading on a demo account but most traders use it to backtest their strategy.
I am not against on demo practice! But, don’t let your emotion raid into your trading because it’s fatal for you. It is the worst human nature and being yield to this nature, traders are embroiled in over-trading and revenge trading. To be a successful trader, it is the first thing to avoid.
Demo account is the best place for practice and experience trading. In the demo account, we get access to a real forex trading platform for practising our strategies and there’s a zero chance of losing money on it. It will boost our experience and decision making skills.
I strongly disagree. I believe that demo trading exists solely to assist you to refine your methods or backtest your strategies, given that you are not spending money in your demo trading. When compared to live, one thing you will not be able to feel is emotions when placing an order.
I agree that a demo will not provide you with sufficient experience, mostly since demos were not designed for such reasons. Demo accounts were developed for the purpose of testing, modifying trading methods, and gaining experience with trading. I believe that a demo account is a highly beneficial tool for individuals new to trading. You should apply for a demo account if you wish to examine and comprehend the market's dynamics. It does not provide many experiences, but it does educate you on how to do trading. When you are trading on a demo, you don't experience the same feelings that you would on a live account.
That is incorrect. The demo account is an excellent area to practice trading and gain experience. It is perhaps the most valuable aspect of forex trading because it allows you to study and acquire expertise without risking any real money.
demo account doesn't have such a function - to make traders well experienced, but i can agree that there are bunch of traders who think otherwise. they believe that demo trading will help them to gain as much as experience as other traders receive on real accounts... nah, it doesn't work like that. probably, you will just find the comfort level for you and the days fly and it will be so difficult to relocate on a real account that finally it will lead to the only exit - exit from trading.
hence, i am convinced that the necessity of demo trading shouldn't be overestimated like you will be as skilful as professional traders due to demo. it is just an instrument, no more. traders have to consider demo accounts as the bridge to the world of trading, the only way is to pass this bridge and that's it.
The purpose of opening and using a demo account is to get the newbie trader acquainted with the market. In the process of learning about forex trading, when the beginner uses a demo account, he can detect any shortcoming in trading plans, perform market analysis, and develop risk management plans. Hence, a forex demo account is not to get one experienced in trading, but is just a booster to help a beginner learn about the market.
You must understand that the purpose of a demo account is to provide you with an idea of how your live account will work. However, you are missing out on the anxiety of losing money because you are effectively losing nothing on the demo account while losing money in the real account.
You can practice on a demo account until you get comfortable. However, it doesn’t prepare you for the loss you feel during live trading. Demo is a good practice option to test strategies and get a larger idea. Your risk appetite will be tested when you switch to live trading.
I don't agree with you. Demo is a good account for testing and education. Since when youre newbie it doesn't recommend to trade on live. You talk about emotions. But what hindeks you to think that demo money is your real money. You can program your brain. And then demotrading will as hard, as real one.
I believe that describing demo tapes is essential for Forex traders. Of sure, trading on a sample account can help me gain expertise and a clear vision for the future. Especially for those who are new to Forex trading. They may learn about Forex trading without any difficulty if they follow a demonstrated explanation.