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!